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Nat_tax(Enthusiast)Enthusiast
16 Oct 2024

Hello,

Can an employer, by agreement with an employee, pay additional super guarantee as part of a termination payment?

E.g. where an ex-gratia payment is intended to equate to 4 weeks of pay (not lieu of notice), can the employer also pay the equivalent to 4 weeks of super guarantee? Not on the ex-gratia payment per se, as the ex-gratia isn't OTE, but as part of the termination package.


Thank you!

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241 views
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TamaraATO(Community Support)Community Support
20 Oct 2024

Hello @Nat_tax,


Sure.

You can pay your employees whatever super you like, as long as it's the minimum or above, and you report it to us. ๐Ÿ˜ƒ. You might want check that won't put them above any relevant caps.


As you know we don't consider Termination payments, that aren't in-lieu of notice, as OTE. So, you're not 'required to' pay super. ๐Ÿ‘Œ


Workplace agreements and awards can override the general rules of when to pay superannuation.



All replies

Most helpful reply

TamaraATO(Community Support)Community Support
20 Oct 2024

Hello @Nat_tax,


Sure.

You can pay your employees whatever super you like, as long as it's the minimum or above, and you report it to us. ๐Ÿ˜ƒ. You might want check that won't put them above any relevant caps.


As you know we don't consider Termination payments, that aren't in-lieu of notice, as OTE. So, you're not 'required to' pay super. ๐Ÿ‘Œ


Workplace agreements and awards can override the general rules of when to pay superannuation.



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Can an employer pay additional super guarantee on termination by agreement? | ATO Community