What is the Super Guarantee contribution

Superannuation Guarantee (SG) is the official term for compulsory superannuation contributions made by employers on behalf of their employees.

The Superannuation Guarantee rate

The Superannuation Guarantee rate is currently 12% of your Qualified Earnings (QE). For Super Guarantee purposes, qualifying earnings includes income such as:

Your regular wage (ordinary time earnings)
Shift allowances
Commissions
Some bonuses
salary sacrifice superannuation contributions
other amounts which are currently included in an employee’s salary or wages for SG purposes

Overtime payments are usually not included.

Super Guarantee eligibility

Generally, you’re entitled to Super Guarantee contributions from an employer if:

You’re 18 years old or over

You’re under 18 years old, and
You work more than 30 hours per week.

The scheme applies to full time, part time and casual employees who are Australian residents or here on a working visa.

Employer requirements

All employers, small or large, who employ Australians on a PAYG basis are required to contribute the equivalent of 12% of an employee's Qualifying Earnings (QE). These payments must be made on an employee’s payday, with contributions generally needing to successfully arrive at the employee’s super fund within 7 business days.

For a new employee, or an employee where this is the first contribution to a new super fund, the payment must be received by the fund within 20 business days of their first payday.

Your super contributions have to be shown on your payslip. You can also log on to your super fund’s website to see them or wait for your annual statement. It’s important you monitor your super contribution payments from your employer as there are circumstances where some employers may not make their contributions as required. If you see this happening, talk to your employer immediately.