Superannuation Employer Contributions: What are the Rates?
Written by: Chris Strano
Employer super contributions are contributions made into your superannuation account by your employer.
The information below explains how much your employer contributions should be, the compulsory contribution rate and a calculator to see exactly how much employer contributions you should be receiving.
Employer Super Contributions
The main type of employer super contributions are the mandatory superannuation guarantee (SG) contributions.
It is compulsory for an employer to pay SG contributions into the super account of an employee. The minimum employer super contributions that an employer is required to make is based on the SG contribution rate.
How Much Super Does An Employer Have to Pay?
The Superannuation Guarantee (SG) contribution rate is currently 9.5%. This means an employer must pay at least 9.5% of an employee’s wage into the employee’s superannuation account, in addition to their wage.
For example, if your wage for a year is $80,000, your employer would be obligated to pay SG contributions of $7,600 ($80,000 x 9.5%) into your super account on your behalf.
Related article: Sole Trader Super Contributions
How Often Does an Employer Pay Super?
Your employer must pay the compulsory SG contributions into your account at least every quarter, as follows:
|Quarter||Period||Payment Due Date|
|1||1 July – 30 September||28 October|
|2||1 October – 31 December||28 January|
|3||1 January – 31 March||28 April|
|4||1 April – 30 June||28 July|
Some employers will pay the required SG contributions on a monthly basis, or even weekly or fortnightly – whenever you receive your wage.
When is an Employer Not Required to Pay Super?
Generally, if you earn less than $450 per calendar month (before tax), your employer is not required to pay SG contributions into your super account.
If you are an employee under the age of 18, or considered a private/domestic worker (e.g. nanny), you must also work more than 30 hours per week to qualify for SG contributions.
There are also instances where contractors will be considered employees for superannuation guarantee purposes.
Maximum Employer Super Contributions
The maximum amount than an employer is required to contribute as an SG contribution is based on the maximum contribution base.
The maximum contribution base is expressed as a quarterly salary amount, as follows:
|Income Year||Quarterly Income|
|2020 / 2021||$57,090|
|2019 / 2020||$55,270|
|2018 / 2019||$54,030|
|2017 / 2018||$52,760|
An example of how the maximum contribution base applies is that, if you were to earn, say, $60,000 in one quarter during the 2021 financial year, your employer would only be obligated to pay SG contributions on $57,090 (9.5% x $57,090 = $5,423), not on your actual earned wage of $60,000.
What Do I Need To Give My Employer To Receive Super?
You will need to provide your employer with:
- The name of your preferred super fund;
- The super funds Australian Business Number (ABN);
- The super fund’s Unique Superannuation Identifier (USI);
- Your super fund member number;
- A letter from your super fund stating that it is a complying fund.
All of this information should be easily accessible on the website of your super provider. Your member number can be found on a recent statement, or by phoning, emailing or logging on to your super account.
It is important to also provide your employer and your super fund with your tax file number (TFN).
Super Contributions Calculator
The employer super contributions calculator below shows how much super an employer has to pay on your wage. This should be used as a guide only.
Other Types of Employer Contributions
Other types of employer super contributions include employer contributions over and above the compulsory SG contributions. You should refer to your employment agreement to see if you are entitled to employer contributions in excess of the standard minimum amount.
Salary sacrifice contributions are also technically employer contributions and are classified as reportable superannuation contributions. This is because you have come to an arrangement with your employer to reduce your wage in exchange for equivalent increased super contributions, known as salary sacrifice contributions.
Making or receiving contributions in addition to the standard employer contributions can help your money last longer in retirement.
When it comes to employer super contributions, whether they be SG contributions, additional employer contributions, salary sacrifice contributions or a combination of these, it is important to check your superannuation statement on a regular basis to ensure that you are receiving the expected contribution. Many people miss out on employer contributions by failing to keep their employers honest.