• Checklist: Salary or wages and ordinary time earnings

    The tables in this checklist will help you identify what payments are considered salary or wages and whether they are considered part of ordinary time earnings (OTE) for super guarantee purposes. The list is not exhaustive and is for general guidance only. The payment-type tables are:

    Awards and agreements

    Payment

    Salary or wages

    Ordinary time earnings (OTE)

    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 prevails over award

    Yes

    No

    Agreement supplanting award removes distinction between ordinary hours and other hours

    Yes – all hours worked

    Yes – all hours worked

    No ordinary hours of work stipulated

    Yes – all hours worked

    Yes – all hours worked

    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 method stipulated in award

    Yes

    No

    Allowances

    Payment

    Salary or wages

    Ordinary time earnings (OTE)

    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

    Expenses

    Payment

    Salary or wages

    Ordinary time earnings (OTE)

    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

    Payment

    Salary or wages

    Ordinary time earnings (OTE)

    Annual leave

    Yes

    Yes

    Parental leave – eg, maternity leave, paternity leave, adoption leave

    No

    No

    Ancillary leave – eg jury duty, defence reserve service

    No

    No.

    Termination payments

    Payment

    Salary or wages

    Ordinary time earnings (OTE)

    Termination payments:

    • in lieu of notice
    • unused annual leave

     

     

    Yes
    Yes

     

    Yes
    No

    Bonuses

    Payment

    Salary or wages

    Ordinary time earnings (OTE)

    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

    Last modified: 01 Jun 2015QC 33860