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Guide to superannuation for individuals

 
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How much your employer should pay

If you're eligible for super guarantee contributions, at least every three months your employer must pay into your super account a minimum of 9% of your ordinary time earnings, up to the maximum contribution base. These payments are classified as employer contributions so will count towards your concessional (before-tax) contributions cap.

All employers must use ordinary time earnings to work out their contributions for you. Ordinary time earnings are generally what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses and paid leave. It excludes things such as annual leave loading and reimbursement of expenses and will generally exclude overtime. For example, if your ordinary time earnings for the quarter are $20,000 your employer must pay $1,800 into your super account.

If you receive super contributions under an award, your employer's contributions must be enough to satisfy both the award and the super guarantee requirements.

If you're a contractor, the minimum super amount should be calculated on the labour component of your contract, if it's possible to separate it out. Otherwise it should be calculated on the total amount.

Maximum contribution base

The maximum contribution base limits the maximum amount of super support that your employer has to provide for you each quarter. It's indexed annually. Your employer doesn't have to pay super guarantee contributions for any earnings above this limit. The limit doesn't apply to other mandated contributions, such as contributions you receive under an award.

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To find the maximum contribution base, refer to Key superannuation rates and thresholds.

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Individuals superannuation - home

Sections within Compulsory employer contributions

Last Modified: Tuesday, 29 January 2013

 
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