What is the Superannuation Guarantee?
The Superannuation Guarantee (SG) is the compulsory percentage of wages employers must pay into each employee's super fund. It's 12% of ordinary time earnings from 1 July 2025.
The SG is the backbone of Australia's retirement system. It forces every employer to contribute to their employees' super on top of wages.
The rate history
- July 2014: 9.5%
- July 2021: 10.0%
- July 2022: 10.5%
- July 2023: 11.0%
- July 2024: 11.5%
- July 2025: 12.0% (current)
The legislated scale tops out at 12%. Any further increase requires new legislation.
What counts as ordinary time earnings (OTE)
OTE is your base wage plus shift allowances, over-award payments, bonuses, and commissions. It does not include overtime payments (paid at penalty rates for hours outside ordinary hours).
Maximum contribution base
Employers don't have to pay SG on earnings above the maximum super contribution base ($65,070 per quarter in 2025-26 — roughly $260k/year). High earners often negotiate voluntary employer super on top.
Sources
General information only — not financial advice. Super decisions are long-term; verify with a licensed adviser.