• Personal
  • Employers
  • Advisers
  • Calculators & forms
  • News Hub
  • Contact us
QSuper QSuper
  • Products
    • Why QSuper
    • Can I join QSuper
    • Investment options
    • Fees
    • Financial advice
    • Compare us
    • Insurance
    • Account types
      • Accumulation account
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
      Why QSuper?

      A focus on strong performance

      More reasons to feel good
  • Super
    • Grow your super
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Consolidate your super
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars and education
  • Retirement
    • Why retire with QSuper
    • Retirement accounts
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • Retirement planning
      • Make your super last in retirement
      • The Age Pension and Super
    • How much super do you need to retire
    • Access your super
      • When can you access your super
      • Withdraw your super
    • Seminars and education
      Award-winning

      Money magazine’s Best Retirement Innovator 20232

      Find out more
  • Investments
    • Investment options
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Performance
      • Overview
      • Graphs
      • Unit prices
    • Online investment advice
    • Compare options
    • Change your investment options
    • How QSuper invests
    • Investing your super
  • Insurance
    • Insurance options
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Calculators & forms
  • News Hub
  • Contact us
Join
  • Call
Join Log In - Open navigation
Member Online

Forgot username?
Forgot password?
Register

Navigation

QSuper
  • Personal
  • Employers
  • Advisers
  • Search
  • Join Log In
  • Products Expand
    • Why QSuper
    • Can I join QSuper
    • Investment options
    • Insurance
    • Fees
    • Financial advice
    • Account types Expand
      • Accumulation account
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • Compare us
  • Super Expand
    • Consolidate your super
    • Grow your super Expand
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars and education
  • Retirement Expand
    • Why retire with QSuper
    • Retirement accounts Expand
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • How much super do you need to retire
    • Retirement planning Expand
      • Make your super last in retirement
      • The Age Pension and Super
    • Access your super Expand
      • When can you access your super
      • Withdraw your super
    • Seminars and education
  • Investments Expand
    • Performance Expand
      • Overview
      • Graphs
      • Unit prices
    • Investment options Expand
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Online investment advice
    • Compare options
    • Change your investment options
    • How QSuper invests
    • Investing your super
  • Insurance Expand
    • Insurance options Expand
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Your account Expand
    • Super Expand
      • Transactions
      • Statements and History
      • Investments
      • Performance
      • Financial Advice
      • Insurance
    • Profile Expand
      • Personal details
      • Security
      • Authorities
      • Employer
      • Beneficiaries
    • More Expand
      • Contact us
  • Calculators & forms Expand
    • Superannuation & Retirement Calculators Expand
      • Super and retirement planning calculators
      • Retirement planning
      • Insurance
      • Maximise your super
      • Savings
      • Investing
    • Forms Expand
      • All
      • Forms for claims, withdrawals, and transfers out
      • Forms for deposits, contributions and transfers in
      • Insurance forms
      • Investments
      • Transfer
      • Other forms
    • Publications Expand
      • PDS
      • Guides
      • Annual reports
      • Factsheets
      • Other publications
      • Target Market Determination
  • News Hub Expand
    • Category Expand
      • News
      • Superannuation
      • Retirement
      • Finances
      • Investments
      • Community
      • Wellbeing
      • Employer
  • Contact us Expand
    • Email QSuper
    • Language assistance
    • Browser support
    • Formal enquiries and complaints
    • FAQs – Frequently Asked Questions

News Hub

All Articles News Superannuation Retirement Finances Investments Community Wellbeing
News Hub Superannuation

Is super paid on bonuses?

Superannuation Career
22 June 2022 5 min read

Does your employer have to pay super on any bonuses you earn?

employees clapping

The answer for the most part is that employers do pay super on bonuses and other ordinary time earnings1, but there is a situation in which employers are not required to pay super on bonuses.

It is important to note, however, that some employers, including the Queensland Government, have different contribution arrangements and, in those cases, employer obligations may differ from those outlined here.

Bonuses can be paid for a range of reasons, usually at the discretion of your employer, but they can also be an integral part of an employment contract. Some common ways to earn bonuses include:

  • Meeting performance or sales benchmarks
  • As an incentive to stay with an employer (retention bonus)
  • As an enticement to start working for an employer (sign-on bonus)
  • As an end-of-year reward (annual or Christmas bonus).

Was the bonus earned during ‘normal’ work hours?

Whether your employer is required to pay super on the money you receive as a bonus depends on whether you have earned the bonus during your normal hours of work.

Under the terms of Australia’s Superannuation Guarantee, from 1 July 2022 employers must pay a minimum 10.5% of an employee’s ordinary time earnings (OTE) into their nominated superannuation account. Employers can choose to pay more if they wish.

OTE means the money you would earn during your designated work hours. That includes things such as leave loading, shift allowances, back pay, commissions, and bonuses.1

So, if you have earned your bonus because of the work you have done during those regular hours, your employer must also pay a minimum of 10.5% of that amount into your designated super fund.

An exception to the payment of super on bonuses

However, the same does not apply if you are being paid a bonus for work you have done wholly during overtime hours that is not deemed OTE.

Employers are not required to pay super on overtime worked that is not OTE2. It follows, then, that your employer is not required to pay super on a bonus that has been earned from work done during that overtime.

A super strategy

Bonuses, even if they are earned during overtime hours, present an opportunity to grow your super balance.

While bonuses calculated on sales targets or revenue numbers can sometimes be anticipated to form a large part of a person’s pay, other bonuses (Christmas bonus, sign-on bonus) may offer the opportunity to boost your retirement fund.

Money earned from an anticipated bonus could possibly allow you to salary sacrifice, some of your regular income, which can be a tax-effective way of saving for the future. This means paying money into your super from your before-tax salary, which has the additional benefit of reducing the amount of income tax you pay.

Another option is to make after-tax voluntary contributions to your super account, although eligibility conditions apply. See our Personal Contributions Guide for more information.

Even small amounts paid regularly into super this way can have an impact on your retirement balance when it comes time to wind down your working life. It is important to be aware that there are some limits to how much you can contribute to your super fund each year (known as contribution caps). If you go above these limits, you may pay extra tax.

Heart

How to stay on top of super

Simply log in to Member Online or download the QSuper app

 


1. Australian Tax Office, updated 26 May 2021, List of payments that are ordinary time earnings, accessed 7 June 2022 at ato.gov.au
2. Australian Tax Office, updated 1 September 2021, How much super to pay, accessed 7 June 2022 at ato.gov.au

Related Content
Overtime work Is super paid on overtime?
26 Jun 5 MIN READ

If you regularly work overtime, it’s important to understand what that means for your super.

Read more
Superannuation
IF YOU ENJOYED THIS ARTICLE, YOU MIGHT ALSO LIKE...
Overtime work Is super paid on overtime?
26 Jun 5 MIN READ

If you regularly work overtime, it’s important to understand what that means for your super.

Read more
Superannuation
manager at desk Will scheduled Super Guarantee rate rises go ahead
27 Aug 5 MIN READ

Arguments for and against increasing the rate of compulsory super contributions are making headlines. What does it mean for you?

Read more
News Superannuation
young woman at home doing finances on laptop How to rebuild a $10,000 early super withdrawal
01 Jun 5 MIN READ

Recover your early super withdrawal.

Read more
Finance News Superannuation
young couple standing in front of a house Can I use my super for a house deposit?
30 Jun 5 MIN READ

Did you know you could potentially use your super to buy your first home?

Read more
Finance Superannuation
All Articles News Superannuation Retirement Finances Investments Community Wellbeing
  • Our products
    • Why QSuper?
    • Investment options
    • Fees
    • Insurance
    • Financial advice
  • Super & retirement
    • How much do you need?
    • Grow your super
    • Consolidate
    • Changing jobs
    • Seminars
    • Access your super
  • Investments
    • Performance
    • Unit prices
    • Graphs
    • Compare options
  • Calculators & Forms
    • Calculators
    • Forms
    • Publications
    • PDSs
    • TMDs
    • Member Outcomes Assessment
  • Contact us
    • 1300 360 750
      Mon-Fri 8.00am to 6.00pm AEST
  • About us 
  • Careers 
  • Sitemap 
  • Privacy 
  • Security 
  • Disclaimer 
  • Terms and conditions 
  • Disclosure 
We're part of Australian Retirement Trust
2020 awards
Facebook Twitter LinkedIn YouTube