How do employer contributions work?
29 March 2021
If you’re working your employer is generally required to pay you superannuation.
These payments are called employer contributions and they’re paid directly into a complying super fund for you at least quarterly.
How much super an employer is required to pay their employees varies.
Superannuation Guarantee
The Government sets a minimum rate of super that an employer must pay their eligible employees and this is called the Superannuation Guarantee (SG).
SG is then scheduled to increase by half a percent each year until it reaches 12% in 2025, as shown in the below table.
| Period | Super guarantee rate |
|---|---|
| 1 July 2021 – 30 June 2022 | 10% |
| 1 July 2022 – 30 June 2023 | 10.5% |
| 1 July 2023 – 30 June 2024 | 11% |
| 1 July 2024 – 30 June 2025 | 11.5% |
| 1 July 2025 – 30 June 2026 | 12% |
Industrial agreements
If you work under an industrial agreement– such as an Enterprise Bargaining Agreement (EBA) or Australian Workplace Agreement (AWA), the amount of super your employer needs to pay is outlined in the agreement.
For many workers in the building and construction industry their industrial agreement sets a higher rate of super than the SG however, if the amount in the agreement is lower than the SG amount, the higher SG amount must be paid.
ABN workers
Many workers in the building and construction industry are employed as ABN contractors, however for SG purposes they may be treated as employees.
Check your super payments
Your latest payslip should detail the super contributions your employer has paid and what super fund they have been paid into, or you can ask your employer.
If you’re not sure what employer contributions you’re entitled to or are concerned you aren’t being paid your super entitlements we can help. Give us a call us on 1800 692 877 or fill in this form to enquire about your super payments.
If you need to tell your employer you want your super paid into your BUSSQ account find out how.
1. The income used to calculate your super is your ordinary time earnings – the amount you earn for your ordinary hours of work including over-award payments, commissions, allowances and paid leave but not including over time.
This article provides general information only and does not take into account your personal financial situation or needs. Before acting, you should review the Product Disclosure Statement to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or obtain financial advice tailored for your personal circumstances. The Target Market Determinations for BUSSQ products can be found at bussq.com.au/forms-and-resources. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).