Announcements
COVID-19 update: We expect to publish updates on the JobKeeper payment soon. For other questions, check out the COVID-19 board.

ATO Community

employer is not meeting its Super Grantee obligation?

Newbie

Views 141

Replies 1

Hi all

I’ve recently started a new job and I believe that my employer is not meeting its Super Grantee obligation. my salary is made up of a base Salary and a work allowance (20% of the base salary). my employer is only making the super contribution of 9.5% on the base salary and nothing on the work allowance. I have discussed this with a few other employees and they are all in the same situation and it has been like this for years. I am under the impression that an employer’s super contribution must be 9.5% of Ordinary Time Earnings and to me that should include the work allowance.

 

In my employment agreement the work allowance is described as - “Work Allowance is payable to ###### based employees in consideration of the associated average working hours, hardship of roster arrangement and all aspects of working at site operations. Work Allowance is calculated as a percentage of Base Salary”

 

my employment agreement also describes my hours of work as -“Your roster pattern will be 8 days on and 6 days off, working a nominal 12 hours per day (excluding handover where applicable) plus reasonable additional hours as required.”

 

is my employer allowed to pay super on only the base salary???

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

Master

Replies 0

ATO's OTE / Salary Checklist

 

Based on the hours you are working and the information you have provided, it appears (and I am assuming here) the intention of the 20% allowance is to compensate for the overtime hours worked (12hrs per day of 8 on 6 off is an avg of 48 hours per week, 40 ordinary + 8 hours overtime. 8/40 = 20%) - to which case it is not treated as OTE.

 

 

1 REPLY 1
Highlighted

Best answer

Master

Replies 0

ATO's OTE / Salary Checklist

 

Based on the hours you are working and the information you have provided, it appears (and I am assuming here) the intention of the 20% allowance is to compensate for the overtime hours worked (12hrs per day of 8 on 6 off is an avg of 48 hours per week, 40 ordinary + 8 hours overtime. 8/40 = 20%) - to which case it is not treated as OTE.