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_spudnic(Newbie)Newbie
1 Feb 2021

I have recently finished working for an employer on a permanent casual basis, whereas most weeks I worked 40 hours or more. I have just discovered that, when working less than the 40 hour week, my super reflected those hours, insomuch as my payments were reduced to suit the number of hours worked. Fair enough. However, when I worked more than the 40 hours in a given week, my super didn't rise above the amount paid for 40 hours. As I wasn't earning, any set weekly wage, rather an hourly rate, am I correct in believing that my super payments should also rise to reflect all hours worked in any given week, particularly over 40 hours? I am aware of the rules regarding super not being payable for overtime and bonuses etc, however my hourly rate remained the same regardless of the number of hours worked.I hope someone can help me answer this.

Thanks in Advance

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1,172 views
1 replies

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Most helpful replyATO Certified Response

RachATO(Community Support)Community Support
ATO Certified Response2 Feb 2021

Hi @spudnic,

As you've touched on, employer superannuation payments are based on an employee's ordinary time earnings (OTE) paid for the employee's ordinary hours of work. However OTE doesn't include hours or payments considered to be overtime performed beyond the ordinary hours of work.

If you have a workplace agreement with your employer, it may be worthwhile to look at the details of this to identify whether they've stipulated a set number of working hours are considered to be OTE. However, if no set hours have been identified (which can be the case for casual employees), or if certain amounts paid to you can't definitively be identified as being overtime payments, then the actual hours you've worked would be considered your ordinary hours (thus, entitled to super).

I'd also encourage you to look at some example of common OTE and superannuation situations that we have available on our website (Example 2- Kim might be a good one to look at), and I'll place the link below.

If you find that your employer has underpaid your super, we can guide you on some steps to follow in order to get things back on track.

For more information on Ordinary Hours, OTE and overtime see our 'How much to pay' super for employers page. Additionally, the Awards and Agreements chart identifies types of payments considered OTE for superannuation.

Examples of OTE and super situations I mentioned above are here. For guidance on how to claim your unpaid super from your employer, please see this 'Unpaid super' link.

Wishing you all the best and please let us know if you need more assistance.

RachATO

All replies

Most helpful replyATO Certified Response

RachATO(Community Support)Community Support
ATO Certified Response2 Feb 2021

Hi @spudnic,

As you've touched on, employer superannuation payments are based on an employee's ordinary time earnings (OTE) paid for the employee's ordinary hours of work. However OTE doesn't include hours or payments considered to be overtime performed beyond the ordinary hours of work.

If you have a workplace agreement with your employer, it may be worthwhile to look at the details of this to identify whether they've stipulated a set number of working hours are considered to be OTE. However, if no set hours have been identified (which can be the case for casual employees), or if certain amounts paid to you can't definitively be identified as being overtime payments, then the actual hours you've worked would be considered your ordinary hours (thus, entitled to super).

I'd also encourage you to look at some example of common OTE and superannuation situations that we have available on our website (Example 2- Kim might be a good one to look at), and I'll place the link below.

If you find that your employer has underpaid your super, we can guide you on some steps to follow in order to get things back on track.

For more information on Ordinary Hours, OTE and overtime see our 'How much to pay' super for employers page. Additionally, the Awards and Agreements chart identifies types of payments considered OTE for superannuation.

Examples of OTE and super situations I mentioned above are here. For guidance on how to claim your unpaid super from your employer, please see this 'Unpaid super' link.

Wishing you all the best and please let us know if you need more assistance.

RachATO

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