The Superannuation Guarantee (SG) rate is 12% of your ordinary time earnings, effective from 1 July 2025. This is the final rate under the legislated schedule — no further increases are planned. Every eligible employee in Australia is entitled to receive this contribution on top of their wages, paid directly into their nominated super fund by their employer.
This guide explains how employer super contributions work, who is entitled to them, exactly how much you should be receiving, and what changes are coming with Payday Super in 2026.
What Is the Superannuation Guarantee?
The Superannuation Guarantee is a law that requires most Australian employers to contribute a percentage of their employees’ ordinary time earnings into super. It was introduced in 1992 as a way to build retirement savings for all working Australians, regardless of whether they actively chose to save.
The SG is:
- Paid on top of your wages — not deducted from your take-home pay
- A legal obligation, not a discretionary benefit
- Calculated on ordinary time earnings (OTE), not all pay
- Paid into your nominated super fund, defaulting to the employer’s chosen fund if you haven’t nominated one
Employers who fail to meet their SG obligations must pay the Superannuation Guarantee Charge (SGC) to the ATO — a penalty that includes the unpaid super, interest, and an administration charge.
Current SG Rate (FY2025–26)
The Superannuation Guarantee rate from 1 July 2025 is 12% of ordinary time earnings.
This rate is the final step in a decade-long schedule of increases legislated under the Superannuation Guarantee (Administration) Act 1992 (Cth). There are no further rises legislated beyond 12%.
Historical SG Rate Schedule
| Financial Year | SG Rate |
|---|---|
| 2002–03 to 2012–13 | 9.00% |
| 2013–14 | 9.25% |
| 2014–15 to 2020–21 | 9.50% |
| 2021–22 | 10.00% |
| 2022–23 | 10.50% |
| 2023–24 | 11.00% |
| 2024–25 | 11.50% |
| 2025–26 onwards | 12.00% |
The rate was frozen at 9.5% between 2014 and 2021, before the scheduled annual increases resumed.
How Much Super Should You Be Receiving?
At 12%, the dollar amount of super you’re entitled to depends directly on your salary. The table below shows annual SG entitlements at common salary levels for FY2025–26.
Annual Employer SG Contributions by Salary
| Annual Salary (OTE) | SG at 12% (Annual) | SG per Month (approx.) |
|---|---|---|
| $40,000 | $4,800 | $400 |
| $50,000 | $6,000 | $500 |
| $60,000 | $7,200 | $600 |
| $80,000 | $9,600 | $800 |
| $100,000 | $12,000 | $1,000 |
| $120,000 | $14,400 | $1,200 |
| $150,000 | $18,000 | $1,500 |
| $180,000 | $21,600 | $1,800 |
These figures apply to ordinary time earnings only. Overtime pay and some allowances may be excluded — see below.
Maximum Super Contribution Base
The SG is not calculated on unlimited earnings. There is a cap — called the maximum super contribution base (MSCB) — above which employers are not legally required to pay the SG.
For FY2024–25, the MSCB was $62,270 per quarter ($249,080 annually). The ATO adjusts this each year in line with AWOTE (average weekly ordinary time earnings). Check the ATO website for the current year’s figure.
If your salary exceeds the annual MSCB threshold, your employer is only required to pay SG on earnings up to that limit. Many employers contribute on total salary above this cap — but it is not legally required.
What Counts as Ordinary Time Earnings?
Employers calculate SG on your ordinary time earnings (OTE), not your total pay package. Understanding what counts as OTE matters because it determines your entitlement.
Included in OTE
- Your regular salary or wage
- Over-award payments (payments above the minimum award rate)
- Shift loadings
- Allowances (in most cases)
- Commissions
- Paid leave (annual leave, personal/carer’s leave)
- Bonuses paid in respect of ordinary hours
Generally Excluded from OTE
- Overtime pay (hours worked in addition to your ordinary hours)
- Reimbursements of expenses
- Termination payments (e.g. redundancy pay)
- Workers’ compensation payments (in most cases)
The distinction between overtime and ordinary hours can be complex, particularly for salaried employees. The ATO’s OTE guidance is the authoritative reference.
Employer Payment Deadlines — Quarterly Obligations
Employers must pay SG contributions by specific quarterly deadlines. Missing a deadline means the employer is immediately in breach and liable for the SGC.
FY2025–26 Quarterly Due Dates
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | 1 July – 30 September 2025 | 28 October 2025 |
| Q2 | 1 October – 31 December 2025 | 28 January 2026 |
| Q3 | 1 January – 31 March 2026 | 28 April 2026 |
| Q4 | 1 April – 30 June 2026 | 28 July 2026 |
If the due date falls on a weekend or public holiday, the deadline extends to the next business day.
Because super is paid quarterly, it is normal to see a gap of up to three months between when you earn wages and when the super contribution actually appears in your account. This is a key reason why many Australians go years without noticing unpaid super.
Payday Super — Major Change from 1 July 2026
From 1 July 2026, the way employers pay super will fundamentally change.
Under the Payday Super reform, employers will be required to pay super contributions on the same day they pay wages — rather than quarterly. This means:
- Super will appear in your fund within days of each pay cycle
- Unpaid super will become visible almost immediately, rather than accumulating for months
- The ATO will have real-time data to identify and act on non-payment
This is the most significant change to SG administration since the system was introduced. It eliminates the window during which employers could delay or underpay super without employees noticing.
If you are an employer, begin planning now — your payroll system will need to support same-day super payments. If you are an employee, Payday Super means your super balance will update with every pay run from July 2026 onwards.
Who Is Entitled to Employer Super Contributions?
Most employees are entitled to the SG, but there are specific eligibility rules.
Entitled to the SG
- Employees aged 18 and over, regardless of hours worked or how many employers they have
- Employees under 18 who work more than 30 hours per week
- Casual employees (including part-time and irregular workers)
- Employees on temporary visas (in most circumstances)
- Company directors who are paid a salary
Generally Not Entitled to the SG
- Genuine independent contractors (paid on a contract for services rather than a contract of service) — though the ATO looks at the substance of the arrangement, not just labels
- Non-resident employees performing work entirely overseas for an overseas employer
- Family members in certain private company arrangements
Important: Misclassification as an independent contractor when you are actually an employee is common and can result in years of unpaid super. The ATO provides an employee vs contractor decision tool to help clarify your situation.
Self-Employed Australians and Super Contributions
If you are self-employed — a sole trader, partner in a partnership, or a contractor operating through your own structure — you are generally not entitled to employer SG contributions. You are responsible for building your own super.
You can make voluntary contributions directly to a super fund:
- Personal concessional contributions — claim a tax deduction by lodging a Notice of Intent to Claim a Deduction with your fund. These are taxed at 15% inside super rather than your marginal rate.
- Non-concessional contributions — after-tax contributions from personal savings, up to the annual cap.
The concessional contribution cap for FY2025–26 is $30,000 (which includes any employer contributions if you also have employees working for you). See our guide on super contribution limits for the full rules.
How to Check Your Super Is Being Paid
Because super has historically been paid quarterly, many Australians don’t actively monitor whether their super is being paid correctly. Here’s how to check.
Method 1 — Check Your Super Fund Account Directly
Log in to your super fund’s online portal or app and review your transaction history. You should see quarterly employer contributions. If you have multiple employers, confirm contributions from each.
Method 2 — Check via ATO Online (myGov)
Link your myGov account to the ATO. Under “Super” you can see all registered super accounts and employer contribution history reported to the ATO.
Method 3 — Check Your Pay Slip
Your employer is required to show your super entitlement on each pay slip. Compare the amount shown against what actually appears in your fund.
What to Do If Super Is Unpaid
If you believe your employer has not paid your super:
- Raise it with your employer in writing (payroll or HR department)
- If unresolved, report it to the ATO using the Report a tax agent or employer tool
- The ATO can investigate, issue the SGC to your employer, and recover unpaid amounts on your behalf
The ATO collected over $800 million in unpaid super in FY2022–23 following employer investigations. You will not face any penalty for reporting — it is entirely legal and your employer cannot retaliate.
Employer Super and Your Total Remuneration Package
When negotiating salary, it is critical to clarify whether the figure offered is:
- Base salary plus super — you receive the stated salary AND the employer pays 12% SG on top
- Total package (inclusive of super) — the 12% super comes out of the total figure, reducing your take-home pay
Example:
- $100,000 base salary + super = $100,000 wages + $12,000 SG = $112,000 total cost to employer
- $100,000 total package inclusive of super = approximately $89,286 base salary + $10,714 SG
Always clarify this when reading a job advertisement or accepting an offer. “Including super” significantly reduces the effective salary.
Frequently Asked Questions
Is super paid on bonuses? It depends on the type of bonus. Bonuses paid in respect of ordinary hours of work are generally included in OTE and attract SG. Bonuses classified as overtime-related may be excluded. Check your specific award or enterprise agreement and the ATO’s OTE guidance.
Can my employer pay more than 12% super? Yes. The SG is the legal minimum — employers can voluntarily contribute more, and many do as part of salary packaging. Some public sector employers contribute 15–18%. Additional employer contributions above the SG are called “employer additional contributions” and count toward your concessional cap.
Does the SG apply to superannuation contributions made through salary sacrifice? No. Salary sacrifice super contributions made by your employer on your behalf do not replace the SG — employers must still pay the full 12% SG on your ordinary time earnings. However, from 1 January 2020, salary sacrifice contributions cannot be used to reduce the base on which SG is calculated (the so-called “salary sacrifice top-up loophole” was closed by legislation).
What happens if my employer pays super late? If contributions are paid after the quarterly due date, the employer is technically liable for the SGC — even if they eventually pay. The SGC is not deductible to the employer (unlike regular SG contributions), so late payment is costly. Employees are not penalised.
Will the SG rate go above 12%? No further increases are currently legislated. The 12% rate represents the completion of the schedule. Any future increase would require new legislation.
For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.