This article forms part of our series of blogs covering the National Employment Standards (NES). These are the minimum terms of employment that apply to those Australian workers who are part of the National Workplace Relations System (which is the vast majority of workers, refer here for more details), regardless of whether or not they are covered by an Award.
Whilst employers and employees can agree to terms that supplement the NES, they cannot provide for conditions that are less than the NES or the national minimum wage. The NES cannot be excluded, modified, or reduced; they form part of the “safety net” that covers the majority of Australian workers.
What is Superannuation under the NES?
From 1 January 2024, superannuation contributions became an express entitlement under the NES. This legislative change means that most employees covered by the NES can now take court action under the Fair Work Act to recover unpaid or underpaid superannuation contributions, unless the Australian Taxation Office (ATO) has already commenced proceedings in relation to that superannuation.
This enhancement strengthens employees’ ability to enforce their superannuation entitlements and holds employers accountable for meeting their obligations.
This addition of superannuation to the NES complements existing obligations under the Superannuation Guarantee (Administration) Act 1992, which requires employers to make minimum superannuation contributions (“the super guarantee”) on behalf of eligible employees.
Note that Awards and Registered Agreements may also provide additional or varied terms relating to superannuation payments.
What is payable?
Under the super guarantee, employers are generally required to pay super contributions of 12% (this is the rate applicable since July 2025) of an employee’s ordinary time earnings when an employee is:
- over 18 years, or
- under 18 years and works over 30 hours a week.
If eligible, the super guarantee applies to all types of employees, including:
- full-time employees
- part-time employees
- casual employees.
Temporary residents are also eligible for super.
Super needs to be paid at least every 3 months and into the employee’s nominated account.
Failure to make the required contributions can result in significant penalties.
Superannuation and Contractors
If you engage independent contractors mainly for their labour, they may be deemed employees for superannuation guarantee (SG) purposes, and you may need to pay super for them also.
It generally doesn’t matter if the independent contractor has an Australian business number (ABN).
Seek further advice if you are unsure.
Superannuation Contributions are Generally Calculated on:
- Ordinary hours of work – including salary or wages for ordinary hours
- Over-award payments – if for ordinary hours
- Shift loadings and penalty rates – if worked during ordinary hours
- Allowances – if they are earned during ordinary hours (e.g. a tool allowance while working normal hours)
- Bonuses – if they relate to ordinary hours of work
- Paid leave – such as annual leave, personal/carer’s leave, long service leave
Further Resources
For more information on superannuation obligations under the NES, visit the Fair Work Ombudsman’s page here.
You can also download the Department of Employment and Workplace Relations’ Best Practice Guide here.
Need Assistance?
If you require guidance on meeting your superannuation obligations, feel free to contact us for advice. Your accountant should also be able to assist.
This article provides general information which we believe to be correct at the time of posting. It is a summary and must not be considered complete, professional or legal advice. If you’re an employer and need support that takes into account your particular circumstances, please contact us directly.
