Is super paid on overtime?

Is superannuation paid on overtime?

In Australia, you must be paid super if you’re a paid employee, but super is not guaranteed for hours worked on overtime.

According to the Superannuation Guarantee, as of mid-2025 at least 12% of an employee’s wages must be paid into their super fund, whether they’re full-time, part-time or casual. Workers who are under 18 or a domestic or private worker (such as a nanny or housekeeper) must also work more than 30 hours per week to be eligible for Super Guarantee payments.

This 12% is paid at least quarterly, is paid on top of your wages, and is the minimum amount required – your employer can pay more if they see fit, or if you choose to make a salary sacrifice.

However, the calculations for this 12% are only based on your ordinary time earnings (OTE), which are generally what an employee will earn during their ordinary hours of work, including commissions and allowances. But OTE does not include overtime payments.

For example, if you are contracted to work between 9 and 5, then you are only paid super for these hours. If you work until 6pm to earn an extra hour of overtime pay, you may not get any extra super unless your employer decides otherwise.

What does ordinary time earnings include?

• Over-award payments
• Commissions
• Agreed-upon rate per task completed
• Shift-loading
• Allowances
• Performance bonuses
• Christmas bonus
• Annual leave
• Termination payments in lieu of notice

When can you be paid super on your overtime?

There are a few exceptional circumstances where you could be paid super on your overtime hours.

For example, if your normal working hours are not clearly defined in your award or agreement, all of the hours you work could be considered OTE. This would mean even if you put in extra shifts beyond your typical work schedule, you may be entitled to super paid on these hours. Similarly, if you earn piece-rates where no ordinary hours are stated, you may be entitled to super on all of the hours you work.

As superannuation rules can receive changes and updates, consider checking with the Australian Taxation Office (ATO) what may or may not be considered OTE so you can make sure you’re being paid super correctly.

Can you use overtime to grow your super balance?

You may still be able to put some of the money you earn from overtime towards your super. For example, by arranging a salary sacrifice with your employer, part of your pre-tax income can be put towards your super savings, which can include your overtime.

You could also consider making voluntary contributions from your post-tax income, on either a regular basis or as one-off payments.

Remember that there are caps, terms and conditions involved in making concessional and non-concessional super contributions, and they may also affect the tax you pay. Consider checking with the ATO, a tax accountant, or a financial adviser before making any changes or financial decisions.

What can you do if your super isn’t being paid correctly?

If, after checking your super balance, you believe your superannuation isn’t being paid correctly, you could start by checking with your employer in case it is an honest mistake.

If it turns out your employer has not been paying the super you’re entitled to, you can report your unpaid super to the ATO.

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