The superannuation guarantee rate will increase from 9.5% to 10% on
1 July 2021. This means your employer must contribute 10% of your ordinary time earnings to your nominated superannuation fund.

Employers are legally responsible for making this contribution to an employee’s superannuation fund.

Please check your payslip to ensure your employer is making the required superannuation contribution of 10% as from 1 July 2021.

Some employment contracts or enterprise agreements (if you are covered by these) may have specific terms about whether your superannuation is paid on top of your base salary, or whether it is included as part of a total remuneration package.

If superannuation is included in your total package, it may be possible for your employer to decrease your base pay to meet their legal obligation to increase your superannuation. However, your employer must ensure your base pay does not fall below the minimum rates under your award, enterprise agreement or employment contract.

Even if your contract allows your employer to reduce your pay in this way, the intent of the superannuation guarantee legislation is that the employer passes on the superannuation increase. Big business including pharmacies have made huge profits over the pandemic and employee pharmacists should not sacrifice their pay, when they are already Australia’s lowest paid health professionals.

Confused about what your contract and salary package mean for your superannuation?

Contact us at [email protected]

This publication is intended for general information only. If you require specific advice tailored for your individual circumstances, please contact the Workplace Advice and Support (WAS) team with a copy of your employment contract by clicking here.