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How to calculate superannuation

Finance Superannuation

24 June 2022 5 min read

To have a clear understanding of how much super you should be getting, here are some of the most frequently asked questions we get about calculating your superannuation.

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Is super calculated on gross or net salary?

The minimum super payment set by the Australian Government, is known as the Superannuation Guarantee (SG).

Your SG rate is based on your Ordinary Time Earnings salary to calculate the minimum SG contributions for eligible employees, which is generally what you earn for your ordinary hours of work, including commissions, shift loadings and allowances, but not overtime payments.¹ This is your gross (before tax) payment.

Generally, you’re entitled to the SG if you’re working and 18 years old or over. If you’re under 18 years old, you must be working more than 30 hours per week to be entitled to super contributions.

The SG rate is 10.5% as of 1 July 2022. Some employers, including the Queensland Government, may contribute more to your super.

How much super do I get a year?

If you’re eligible, from 1 July 2022 employers must pay 10.5% of ordinary time earnings (OTE) into your choice of super fund.

You can calculate how much super you should be paid by using the Moneysmart employer contributions calculator.

Are contractors paid superannuation?

If you’re a contractor, you may or may not be eligible for super, depending on the nature of your engagement and the work you do.

According to the Australian Taxation Office, you may be eligible for SG if:

Your contract is wholly or principally for your labour (as opposed to being for a specific piece of work)
The engagement is for your personal labour and skills
You must perform the contract work personally – that is, you cannot delegate.

The Australian Taxation Office (ATO) has a useful employee/contractor decision tool to help work out if workers are contractors or employees for tax and super purposes.