Ordinary Time Earnings — what super is actually paid on

The short version

OTE is what you earn for your ordinary hours of work, plus certain extras. Super is paid at 12% of OTE each quarter (moving to payday super from 1 July 2026).

What is in OTE

• Base wage or salary for ordinary hours
• Shift loadings (night shift, weekend)
• Over-award payments
• Casual loading
• Commissions and performance bonuses
• Most allowances (e.g. tool allowance, first-aid allowance)
• Paid annual leave, sick leave, long-service leave taken
• Termination payments for unused annual or long-service leave

What is NOT in OTE

• Overtime payments — the big one. Hours worked outside your ordinary hours and paid at overtime rates don’t attract SG.
• Expense reimbursements (e.g. fuel, travel)
• Redundancy pay
• Payments in lieu of notice
• Parental leave payments (government or employer-funded)
• Jury duty pay

Where employers trip up

Annualised salary contracts with rolled-up overtime are a common problem. If your contract says “$120,000 inclusive of reasonable additional hours”, the ATO will usually treat the whole $120k as OTE — even though the employer thinks some of it represents overtime.

Payments during paid annual leave are OTE. Payments for untaken leave on termination are OTE. Payments for time not actually worked (e.g. redundancy) are not.

How to check you’re being paid correctly

1. Work out your OTE for the quarter (base + shift loading + bonuses + paid leave taken)
2. Multiply by 12%
3. Compare to the SG amount on your payslip / super fund statement

If it’s short, raise it with payroll first, then the ATO via the Unpaid Super Enquiry.

Maximum super contribution base

Employers aren’t required to pay SG on earnings above the maximum super contribution base ($65,070 per quarter in 2025-26, roughly $260k p.a.). High earners often negotiate voluntary employer super above that as part of total remuneration.