Super guarantee is the minimum super you must pay each quarter for each eligible employee to avoid paying the super guarantee charge (SGC). Super guarantee is based on the employee's ordinary time earnings multiplied by the current super guarantee rate.
Ordinary time earnings are usually the amounts your employee earns for their ordinary hours of work. It includes things like commissions, shift loadings and allowances, but not overtime payments.
Use the ATO's list of payments that are salary or wages and ordinary time earnings to help you identify what payments are considered part of ordinary time earnings for super guarantee purposes. Remember, super guarantee is calculated on ordinary time earnings and not total salary or wages. When using the payments list, ordinary time earnings (OTE) is shown in the right-hand column.
To calculate super guarantee, multiply your employee's ordinary time earnings for the quarter by the current super guarantee rate.
Super guarantee = ordinary time earnings x super guarantee rate
The example below is based on the percentage for the financial year in which the employee was paid.
Example – Calculating super guarantee
During the first quarter of 2023–24, Kylie's ordinary time earnings are $8,000.
Kylie's employer calculates her super guarantee as follows.
ordinary time earnings × super guarantee rate
$8,000 × 11% = $880
Kylie's employer must contribute at least $880 to a complying super fund or retirement savings account (RSA) for Kylie by the due date for the quarter to avoid the SGC.
If you make super contributions under an award, check that those contributions meet both the award and super guarantee obligations.
Generally, you can claim a tax deduction for super guarantee payments you make as long as you pay them on time and to the right fund.
You can claim the tax deduction in the same financial year your payment is received by the super fund.
