How to calculate superannuation
Super is calculated by multiplying your gross salary and wages by 9.5%, this is known as the Superannuation Guarantee. Overtime and expenses are excluded but most bonuses and allowances are included. For example if you earn $70,000 and a $4,000 bonus then $74,000 x 9.5% = $7,030.
The calculator below provides an easy way to do this.
If you earn $55,270 per quarter or more in FY2019/20, you’ll need to check with your employer how much superannuation they are paying into your fund. The maximum super guarantee amount an employer is required to contribute is the equivalent of 9.5% of $55,270 per quarter (equivalent to $221,080 for the year), which works out to be a contribution of $5,250.65 per quarter.
How much superannuation do I pay/get paid?
Employers must pay 9.5% of ordinary time earnings into your super fund. For Super Guarantee purposes, that is usually 9.5% of the amount you earn from your ordinary hours of work. It includes:
- Shift loadings and allowances
- Some bonuses
Overtime payments however are usually not included.
Your super contributions must be shown on your pay slip. You can also log on to your super fund’s website to see them or wait for your annual statement.
Contractors and the Super Guarantee
If you’re a contractor paid entirely or principally by one company for your work, then you’re considered an employee for super purposes and, as such, entitled to super guarantee contributions under the same rules as employees.
Some workplace agreements between employers and employees will provide for higher superannuation than the legal minimum. This might include a higher superannuation percentage rate; the payment of super on overtime or the payment of super regardless of the employee not earning $450 per month.