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FAR(Newbie)Newbie
19 July 2024

I work for a major Australian company employed on a common law contract.

the basis of the agreement is a Fixed Annual Remuneration (FAR)

Ordinary hours are 38 per week, however I must work a regular and continuous 24/7 12hr roster which requires me to work 42hrs per week. The additional 4 hrs are considered "reasonable additional hrs" in my contract. They form part of my base salary.

There are 10 of us doing exactly the same roster, doing the same work and with the same responsibilities, however we are all being paid very differently with some earning up to 50k more than others.

My FAR is calculated by adding 11.5% on top of my base amount.

In normal simple circumstances that would appear correct, however I also receive a shift penalty amount which is added to my base plus super (FAR) to produce my total salary.

It appears I receive no super on my shift penalty allowance.

I have read the ATO document "list of payments that are ordinary time earnings..." regarding what constitutes Ordinary Time Earnings (OTE) for superannuation and it appears shift penalties should first be added to my base then super calculated on the total.

Could someone please clarify and advise if my understanding is correct and what avenues I may have for recourse with my very large employer?

Many thanks

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1 replies
1,587 views
1 replies

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Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
20 July 2024

Hiya @FAR ๐Ÿ‘‹


Superannuation Guarantee is payable on ordinary time earnings (OTE). OTE means payments made in respect of your ordinary hours of work. Yes, shift penalties for shiftwork are OTE as per the ATO SGR 2009/2 paragraph 22.


Many employers don't actually understand OTE or their SG obligations. Have you asked your payroll team to explain why they haven't paid SG on your shift penalty as per para 22? If that doesn't result in your employer fixing this and lodging a SGC statement with the ATO, then follow the ATO guidance on what to do next. ๐Ÿ€


Deanne

All replies

Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
20 July 2024

Hiya @FAR ๐Ÿ‘‹


Superannuation Guarantee is payable on ordinary time earnings (OTE). OTE means payments made in respect of your ordinary hours of work. Yes, shift penalties for shiftwork are OTE as per the ATO SGR 2009/2 paragraph 22.


Many employers don't actually understand OTE or their SG obligations. Have you asked your payroll team to explain why they haven't paid SG on your shift penalty as per para 22? If that doesn't result in your employer fixing this and lodging a SGC statement with the ATO, then follow the ATO guidance on what to do next. ๐Ÿ€


Deanne

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