The Superannuation Guarantee (SG) requires employers to pay a minimum of 9% of an employee's notional earning base. For most employees', the notional earnings base is pay for their normal working hours (excluding overtime) and is usually called Ordinary Time Earnings (OTE). OTE also includes shift loading, commissions, most bonuses and casual loadings.

Some employees’ earning bases are contained in awards, industrial agreements, laws of the Commonwealth, States or Territories, or in pre-existing trust deeds or other rules of applicable employer sponsored superannuation schemes.

This can mean that some employees’ are paid lower superannuation contributions as a proportion of total remuneration.

From 1 July 2008, employers must contribute 9% of an employee’s OTE, so that all employees’ earning the same amount get the same SG.

There are penalties for employers who don’t comply with these changes. Visit the ATO  website for more information.

For more information call 1300 HOST PLUS (1300 467 875).