Using ordinary time earnings to calculate the super guarantee

Payments included in salary or wages and payments included in OTE

The following table shows which payments are included in salary or wages and which are included in OTE. The list is not exhaustive and is for general guidance only.

Payments to an employee in relation to …	Salary or wages?	OTE?
Awards and agreements
Overtime hours - award stipulates ordinary hours to be worked and employee works additional hours for which they are paid overtime rates	Yes	No
Overtime hours - agreement prevailing over award	Yes	No
Agreement supplanting award removes distinction between ordinary hours and other hours	Yes	Yes
No ordinary hours of work stipulated	Yes	Yes
Casual employee     -  shift-loadings     - overtime payments	Yes Yes	Yes No
Casual employee whose hours are paid at overtime rates due to a 'bandwidth' clause	Yes	No
Piece-rates - no ordinary hours of work stipulated	Yes	Yes
Overtime component of earnings based on 'hourly driving rate' formula stipulated in award	Yes	No
Allowances
Allowance by way of unconditional extra payment	Yes	Yes
Expense allowance expected to be fully expended	No	No
Danger allowance	Yes	Yes
Retention allowance	Yes	Yes
Hourly on-call allowance in relation to ordinary hours of work for doctors	Yes	Yes
Payment of expenses
Reimbursement	No	No
Petty cash	No	No
Reimbursement of travel costs	No	No
Payments for unfair dismissal	No	No
Workers' compensation     - returned to work     - not working	Yes No	Yes No
Leave payments
Annual leave, sick leave or long service leave	Yes	Yes
Parental leave - maternity, paternity and adoption leave	No*	No
Ancillary leave - eg jury duty, defence forces reserves leave	No*	No
Termination payments
Termination payments    - in lieu of notice    - for unused annual leave, sick leave or long service leave	Yes Yes	Yes No
Bonuses
Performance bonus	Yes	Yes
Bonus labelled as ex gratia but in respect of ordinary hours of work	Yes	Yes
Christmas bonus	Yes	Yes
Bonus in respect of overtime only	Yes	No

* These payments are specifically excluded from being 'salary or wages' for super guarantee purposes; however, they may be 'salary or wages' for income tax and super guarantee charge purposes.

For a more detailed explanation of OTE, refer to SGR 2009/2 Superannuation guarantee: meaning of the terms 'ordinary time earnings' and 'salary or wages'.