From 1 July 2025, Australia's Super Guarantee (SG) rate rose to 12% — and it affects every payslip in the country. If you're an employee wondering whether your employer is calculating it correctly, or an employer trying to get the payslip display right, here's what you need to know.
- Super must appear on every payslip — fund name and employer contribution amount are legally required.
- The rate is 12% of OTE (Ordinary Time Earnings) — not necessarily your full gross pay.
- Fair Work Regulations 2009 set the minimum display requirements for employers.
- Salary sacrifice super shows as a separate deduction line and doesn't reduce your employer's SG obligation.
- All casuals are now entitled to super regardless of earnings — the old $450/month threshold was abolished on 1 July 2022.
How Superannuation Actually Appears on an Australian Payslip
Most Australian payslips show superannuation in one of two ways. The first is the employer SGC (Superannuation Guarantee Charge) contribution, labelled simply as "Superannuation" or "Super." The second is an optional salary sacrifice super line, which only appears if the employee has a salary sacrifice arrangement in place.
Here's what a typical payslip super section looks like:
| Line Item | Description | Amount |
|---|---|---|
| Superannuation | Employer SG contribution — Australian Super | $600.00 |
| SS Super | Salary sacrifice contribution (pre-tax deduction) | −$200.00 |
The employer contribution is calculated on Ordinary Time Earnings (OTE) — not the total gross pay on the payslip. That distinction trips up a lot of people. The payslip requirements in Australia guide covers the full list of what must appear.
Calculating Super: OTE, the 12% Rate, and When Payments Are Due
The calculation looks simple — but OTE is where most payroll errors happen. Here's how it works.
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1
Identify OTE — Ordinary Time Earnings (OTE) includes base salary, commissions, and leave loading. It generally excludes overtime payments for most modern awards. Check your specific award or employment contract to confirm what counts.
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2
Multiply by 12% — Apply the current SG rate to the OTE figure for that pay period. For rate history, see the Super Guarantee rate changes for 2025–26.
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3
Worked example — An employee earns $5,000 OTE in a monthly pay period. Super due: $5,000 × 12% = $600. That $600 appears on the payslip as an employer contribution. It's an accrual — the actual payment to the fund happens quarterly.
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4
Quarterly due dates — Employers must pay SG contributions at least quarterly: 28 October, 28 January, 28 April, and 28 July. The payslip shows the accrual per pay period, not when the cash hits the fund.
Overtime is generally excluded from OTE for Super Guarantee purposes under most modern awards. That means if an employee earns $5,000 base + $500 overtime, super is typically calculated on $5,000 — not $5,500. Always verify against the applicable award or contract.
What Employers Must Show — and What a Non-Compliant Payslip Looks Like
Under the Fair Work Regulations 2009 (reg. 3.46), two things are mandatory on every payslip where an employer super contribution applies: the name of the super fund, and the amount of the employer contribution for that pay period. That's the legal minimum. Many payslips also include a YTD (year-to-date) super accrual total — that's best practice, not a legal requirement.
“"Failure to include super fund name and contribution amount on a payslip isn't just an oversight — it's a breach of Fair Work record-keeping obligations and can attract ATO scrutiny."
Two exceptions matter here. For casual employee payslip rules, the old $450/month earnings threshold was abolished on 1 July 2022 — all casuals are now entitled to super from their first dollar earned. For employees under 18, super only applies when they work more than 30 hours per week.
- Fund name shown: "Australian Super"
- Employer contribution listed: $600.00
- YTD super accrual shown (best practice, not legally required)
- Salary sacrifice shown separately if applicable
- No super line item at all
- Amount shown but no fund name
- Only "Super TBC" with no dollar figure
- Salary sacrifice mixed into the super line
Employers setting up payroll for the first time should also review the super rates guide for employers — it covers quarterly payment obligations and what happens when contributions are late.
Salary Sacrifice Super — Why It Looks Different on the Payslip
Salary sacrifice super is a voluntary arrangement where an employee directs part of their pre-tax salary into super. On the payslip, it appears as a deduction (e.g., "SS Super: −$200"), reducing the taxable gross. It's funded from the employee's own earnings, not an additional employer cost.
Since 2020 integrity changes to the SG legislation, the employer's Super Guarantee contribution is still calculated on the pre-sacrifice OTE. Salary sacrifice does not reduce what the employer owes. So if an employee earns $5,000 OTE and sacrifices $200, the employer still pays $600 in SGC — not $576.
Take James, a Sydney-based project manager (a composite of clients we see regularly), who was confused when his payslip showed both a "Super: $600" line and an "SS Super: −$200" deduction. He assumed his employer was only paying net super. His payroll team clarified: the $600 is the employer's obligation; the $200 is James's own pre-tax contribution. Two separate things, two separate lines. Simple once you know — but genuinely confusing on a crowded payslip.
- Super must appear on every Australian payslip — fund name and employer contribution amount are legally required under Fair Work Regulations 2009.
- The SG rate is 12% of OTE, which rose to this level on 1 July 2025 and remains the current rate — it is not 12% of gross pay.
- All casual employees are entitled to super regardless of how much they earn (since 1 July 2022).
- Salary sacrifice super is a separate deduction line and does not reduce the employer's SG obligation.
- Payslip records must reflect real wages paid — falsifying payroll documents is illegal.
Frequently Asked Questions
Does my employer legally have to show superannuation on my payslip in Australia?
Yes. Under the Fair Work Regulations 2009, Australian employers must include the super fund name and the employer contribution amount on every payslip. Failure to do so is a breach of record-keeping obligations and can be investigated by the Fair Work Ombudsman.
How is super calculated on my payslip — is it 12% of my total pay?
Not necessarily. Super is 12% of your Ordinary Time Earnings (OTE), which typically includes base salary and regular leave loading but excludes overtime in most awards. Check your award or contract to confirm exactly what counts as OTE for your role.
What should I do if super isn't showing on my payslip?
Start by asking your employer or payroll team to correct it — it's a legal requirement. If super contributions are also missing from your ATO MyGov account after the quarterly due date, you can report the shortfall directly to the ATO, which will pursue unpaid super on your behalf at no cost to you.
Can my employer pay super less frequently than every quarter?
No. Employers must pay SG contributions at least quarterly — within 28 days after each quarter ends. Paying monthly or fortnightly is fine; paying less frequently than quarterly is a compliance breach that triggers the Superannuation Guarantee Charge (SGC), which includes penalties and interest.
Superannuation is one of the most scrutinised elements of Australian payroll compliance. If your current process is manual or error-prone, a purpose-built tool removes the guesswork.
PayslipMate automatically calculates superannuation at the correct SG rate, displays the fund name, and formats everything to Fair Work standards — for employers, contractors, and payroll teams.
Try the Payslip Generator →Shawn Martinez, CPA
Senior Tax Accountant
Shawn Martinez is a Certified Public Accountant with over 12 years of experience in Australian taxation and payroll compliance. He specializes in PAYG withholding, superannuation regulations, and ATO compliance for small to medium businesses.
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