Compulsory super guarantee rate

Who is eligible for SG contributions?

Generally, you have to pay superannuation guarantee contributions for employees who meet the following conditions:

  • Full-time, part-time, or casual
  • 18 years old - or if under 18, they must be working more than 30 hours per week.

Find out more about your super responsibilities and how we can make it easier for you to pay your employees' super.

What is the current SG rate?

For most employers, the SG rate you need to pay to an employee's super account is 10.5% of their ordinary time earnings (OTE) salary.

This includes their ordinary hours of work, commissions, shift loadings, and allowances, but does not include overtime.

To work out how much super to pay, you can use the Australian Taxation Office (ATO)'s SG contributions calculator or contact us for help.

If you are a Queensland Government employer with employees who are making 'standard contributions', you may need to contribute at a higher rate.

You can use the Australian Taxation Office (ATO) checklist to check what types of payments you need to pay super on.

Superannuation guarantee increase

The super guarantee is scheduled to increase each year until it reaches 12% on 1 July 2025.

Date SG rate
1 July 2021 10%
1 July 2022 10.5%
1 July 2023 11%
1 July 2024 11.5%
1 July 2025 12%

Frequently asked questions about the SG rate

If your question is not answered below, please feel free to contact us. The Australian Taxation Office (ATO) also offers a free online course about employer obligations for the super guarantee.

You need to make SG contributions at least 4 times a year (quarterly), and some super funds and industry awards require you to pay super more frequently.

Find out more.

Yes, under the legislation, you do need to pay SG contributions for casual employees.

No, you do not need to pay super on overtime hours, even if the overtime payment is regular, frequent, or bundled into the employee's total salary package.

However, if you can't identify the exact amount of overtime, then you need to pay SG contributions on all the hours the employee worked that day (ATO).

Find out more.

Yes, if you are paying a bonus for work an employee did during their normal hours of work, you need to make SG contributions on the bonus amount.

However, if the bonus is being paid for work done during overtime hours, you don't need to pay SG contributions on the bonus.

Find out more.

Yes, you should be paying the SG rate while employees are on long service leave. If they request a payout of the leave amount (e.g. when they resign or retire) instead of taking it as leave, then the SG rate does not need to be paid.

Find out more.

Under the current legislation, you do not have to pay SG contributions for employees who are away from work and not receiving pay. In the case of parental leave, although you still pay your employee the national minimum wage for 18 weeks while they're on Centrelink's paid parental leave, you don't have to make SG contributions.

If you offer additional paid parental leave, you may wish to check with the ATO about whether you need to pay SG contributions, as it can depend on your award, employee agreement/contract, or super fund rules.

 

We're here to help

Our dedicated Employer Solutions team can help you understand your super responsibilities.

Contact us
 

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