We have a salaried employee that works a roster, and when they work in excess of the roster, they are entitled to a day in lieu to be taken at their request. When the employee has a balance of hours to be paid out on termination of this time in lieu, does it attract superannuation?
Hey @ShaneM1,
Super is generally paid on your employee's ordinary time earnings (OTE). OTE is the amount your employee earns for their ordinary hours of work. This includes commissions, shift loadings and allowances but not all overtime payments.
Superannuation Guarantee Ruling SGR 2009/2 that's available on our legal database provides a checklist of what's OTE and what's not however it doesn't mention TOIL. It does mention that salary or wages received at the ordinary time rate in respect of public holidays, rostered days of (RDO) and similar is OTE. Whether SG is payable will depend on how the TOIL was accrued.
We've had a similar question to this asked on our forum before. You'll find our response very useful.
Hey @ShaneM1,
Super is generally paid on your employee's ordinary time earnings (OTE). OTE is the amount your employee earns for their ordinary hours of work. This includes commissions, shift loadings and allowances but not all overtime payments.
Superannuation Guarantee Ruling SGR 2009/2 that's available on our legal database provides a checklist of what's OTE and what's not however it doesn't mention TOIL. It does mention that salary or wages received at the ordinary time rate in respect of public holidays, rostered days of (RDO) and similar is OTE. Whether SG is payable will depend on how the TOIL was accrued.
We've had a similar question to this asked on our forum before. You'll find our response very useful.
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