How much super to pay¶

The amount of super you must pay an employee is not a guess. It is worked out with a simple sum. You take a set percentage — the super guarantee rate — and apply it to part of the employee's earnings.

The part of the earnings you use is called ordinary time earnings, usually shortened to OTE. This lesson explains what OTE is, and how the sum works.

In one line

Super is worked out as the super guarantee rate applied to an employee's ordinary time earnings — and your payroll software does the sum for each pay.

Why this matters¶

Super is real money you owe on top of an employee's wages. If you work the amount out on the wrong figure — for example, on every dollar including overtime — you can pay too much or too little. Knowing the sum helps you check that the amount on each pay looks right.

What you will learn¶

That super is worked out as a percentage of ordinary time earnings
What ordinary time earnings are, and that overtime is generally left out
That payroll software works out the amount for each pay

Understanding the concept¶

There are two parts to the sum.

The rate. The super guarantee is a set percentage. The ATO sets this rate. It is currently 12%. So for every $100 of the right kind of earnings, you pay $12 of super.

The earnings you apply it to. You do not apply the rate to every dollar an employee earns. You apply it to their ordinary time earnings (OTE). OTE is broadly what you pay an employee for their ordinary hours of work. The ATO explains that OTE can include things like their normal wage or salary, plus certain shift loadings, commissions, allowances and some bonuses.

The ATO explains that overtime is generally not ordinary time earnings. Overtime is extra pay for hours worked outside an employee's ordinary hours, so it usually sits outside the figure the super is worked out on.

So the sum is: ordinary time earnings × the super guarantee rate = the super to pay.

For accountants & bookkeepers

Since 1 July 2026, under Payday Super, the earnings base the ATO uses is described as qualifying earnings (QE). Qualifying earnings are built around OTE — the ATO describes them as OTE plus certain paid leave, allowances, bonuses and lump sum payments. Overtime is neither OTE nor qualifying earnings, so it stays out of the base. The super guarantee rate is applied to qualifying earnings for each payday. The ATO also notes a maximum contribution base above which super guarantee is not required, and that an award or agreement may set a higher rate.

Example¶

Sam works ordinary hours in a pay period and earns a wage for those hours. In the same period Sam also works a few overtime hours and is paid extra for them.

To work out Sam's super, the payroll software takes Sam's ordinary time earnings — the pay for the ordinary hours — and applies the super guarantee rate to that figure. The overtime pay is generally left out of the sum.

The result is the super amount for that pay. It is recorded against Sam and later paid to Sam's super fund. Sam's payslip shows the super amount, so Sam can see it building up.

Common mistakes¶

Working out super on all earnings, including overtime — overtime is generally left out.
Thinking super comes out of the wage. It does not — it is an extra amount the employer pays on top.
Assuming the rate never changes — the ATO can change the super guarantee rate, so it is worth checking the current rate.

How this works in myaccountant¶

In the app — when you run a pay run, myaccountant works out each employee's super for you. It applies the super guarantee rate to the right earnings (their ordinary time earnings) and shows the super amount for the pay. The super amount also appears on the payslip you can email to the employee, so both you and the employee can see it.

Key points¶

Super is worked out as the super guarantee rate applied to ordinary time earnings.
The super guarantee rate is currently 12%.
Ordinary time earnings are broadly what you pay for an employee's ordinary hours.
Overtime is generally not included in the figure super is worked out on.
Super is an extra amount the employer pays on top of wages, not taken out of them.
Payroll software works out the super amount for you on each pay.

Learn next¶

General information only — not tax, super or financial advice.

Did this answer your question?