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Superannuation, OTE, Flat rate, set hours

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I Work in Mining maintenance on a FMG site and feel my employer is not paying the correct amount of super. I work a 2&1 roster doing 84 hours a week when on site, paid at a flat rate. My employer is only paying superannuation on 38 hours for the 2 weeks on site. My payslip states 38 OTE and 46 hours overtime. Overtime paid at the same flat rate as OTE. The shifts are a set 12 hours and this never differs. I can't see how my employer is able to say that I only do 38 ordinary hours a week. I also receive nothing for my week off. From my understanding the employer either has to pay an overtime allowance or super on all hours. I earn about 130k for the year yet only get around 4.5k in super. Other people working for different contractors on site do exactly the same hours but get superannuation paid on all hours. Either I'm not getting paid proper super or there is a flaw in the system that lets companies get away with this.
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Hi @LA1

 

Welcome to our Community.

 

The minimum super that your employer must pay each quarter for you is called the super guarantee (SG). Currently the SG is 9.5% of your ordinary time earnings (OTE).

 

OTE is usually the amount an employee earns for their ordinary hours of work. It includes things like commissions, shift loadings and allowances, but not overtime payments. For more information about how much to pay, refer to our website.

 

When we provide guidance to employers, we refer them to the checklist: salary or wages and ordinary time earnings page which you can also access. The checklist is based on Superannuation Guarantee Ruling SGR 2009/2 which can be accessed from our legal database.

 

Employers should be referring to the applicable award, agreement or contract that determines your pay and conditions to work out how to pay you. The same document also helps your employer work out your super as they need to compare the various applicable payment types listed in that document with the OTE checklist.

 

If your ordinary hours of work aren't specified in that agreement and there is no higher rate of pay for additional hours worked (the overtime that you referred to), as per paragraphs 203 to 210 of SGR 2009/2, SG should be paid on all hours worked.

 

The ruling also contains a number of examples that you can refer to that talk about overtime and ordinary hours or work. The examples begin at paragraph 79. For additional examples, you can check out the ordinary time earnings and super guarantee - examples page.

 

We recommend that you have a look at your award, agreement or contract and depending on what you find have a chat to your employer. If you're not satisfied with their response, you have the option to report your employer to us.

 

For more information, refer to the unpaid super page on our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @LA1

 

Welcome to our Community.

 

The minimum super that your employer must pay each quarter for you is called the super guarantee (SG). Currently the SG is 9.5% of your ordinary time earnings (OTE).

 

OTE is usually the amount an employee earns for their ordinary hours of work. It includes things like commissions, shift loadings and allowances, but not overtime payments. For more information about how much to pay, refer to our website.

 

When we provide guidance to employers, we refer them to the checklist: salary or wages and ordinary time earnings page which you can also access. The checklist is based on Superannuation Guarantee Ruling SGR 2009/2 which can be accessed from our legal database.

 

Employers should be referring to the applicable award, agreement or contract that determines your pay and conditions to work out how to pay you. The same document also helps your employer work out your super as they need to compare the various applicable payment types listed in that document with the OTE checklist.

 

If your ordinary hours of work aren't specified in that agreement and there is no higher rate of pay for additional hours worked (the overtime that you referred to), as per paragraphs 203 to 210 of SGR 2009/2, SG should be paid on all hours worked.

 

The ruling also contains a number of examples that you can refer to that talk about overtime and ordinary hours or work. The examples begin at paragraph 79. For additional examples, you can check out the ordinary time earnings and super guarantee - examples page.

 

We recommend that you have a look at your award, agreement or contract and depending on what you find have a chat to your employer. If you're not satisfied with their response, you have the option to report your employer to us.

 

For more information, refer to the unpaid super page on our website.

 

Hope this helps.

 

Thanks,

 

ChrisR