Worked examples of the super calculation¶

The super calculation is one simple sum. You take the pay that counts towards super and multiply it by the current rate. The pay that counts is called ordinary time earnings, usually shortened to OTE. The ATO explains that to work out how much super to pay, you multiply an employee's OTE by the super guarantee rate.

The rate is 12% from 1 July 2025, the ATO confirms. So the sum is:

Super = OTE × 12%

This lesson walks through that sum a few times so you can see it in action.

In one line

Super equals ordinary time earnings times the current rate (12% from 1 July 2025). The rest is knowing which pay counts as OTE.

The dollar figures here are illustrative

Every dollar amount below is a rounded, made-up example to show the method. The only real figure is the super rate of 12%. Your own pays will use real amounts.

Why this matters¶

Super is real money you owe on top of wages. If you can follow the calculation yourself, you can check that your payroll is getting it right, answer an employee's question, and spot a figure that looks wrong before it becomes a problem.

What you will learn¶

How to follow the super calculation step by step
How overtime is left out while a bonus is included
How to work out super when an allowance is paid

Understanding the concept¶

Every example uses the same two steps:

Add up the OTE — the part of the pay that counts towards super.
Multiply by 12% — the current super rate.

To multiply by 12%, multiply by 0.12. The tricky part is never the sum. It is deciding which amounts go into the OTE total. The examples below show the common cases.

Example 1 — a simple salaried worker¶

Sam is paid a set weekly wage for ordinary hours. There is nothing extra this week.

Ordinary wage for the week: $1,000 (illustrative)
OTE for the week: $1,000 (the whole wage counts)

Super = $1,000 × 12% = $120

When the pay is just ordinary wages, the OTE is the whole amount, and the sum is straightforward.

Example 2 — a bonus (counts) plus overtime (does not count)¶

Jordan earns ordinary wages, works some overtime, and receives a performance bonus this week. The ATO treats a bonus that rewards ordinary work as OTE, but overtime payments are not OTE when the ordinary hours are set out in an award or agreement.

Ordinary wages: $1,200 (illustrative) — counts
Performance bonus: $300 (illustrative) — counts
Overtime: $200 (illustrative) — does not count

Step 1 — add up the OTE (leave the overtime out):

$1,200 + $300 = $1,500

Step 2 — multiply by 12%:

Super = $1,500 × 12% = $180

The $200 of overtime is left out of the OTE, so no super is worked out on it. The bonus is added in, so super is worked out on it.

Example 3 — a worker with an allowance¶

Priya earns ordinary wages plus an allowance that rewards her for doing her job (for example, an allowance that is not simply reimbursing an expense). The ATO explains that some allowances are OTE, while an allowance that just reimburses an expense the employee is expected to spend is not OTE. Here the allowance counts.

Ordinary wages: $1,400 (illustrative) — counts
Allowance that counts as OTE: $100 (illustrative) — counts

Step 1 — add up the OTE:

$1,400 + $100 = $1,500

Step 2 — multiply by 12%:

Super = $1,500 × 12% = $180

If instead the allowance had simply reimbursed an expense, it would be left out of the OTE, the same way overtime was left out in Example 2.

Example 4 — paid leave taken while employed¶

Alex takes a week of paid annual leave. The ATO explains that paid leave for ordinary hours — such as annual leave, sick leave or long service leave — is OTE. So super is still worked out for that week.

Ordinary hours worked: $0 (on leave all week)
Paid annual leave for the week: $1,000 (illustrative) — counts

Step 1 — add up the OTE:

Paid leave for ordinary hours = $1,000

Step 2 — multiply by 12%:

Super = $1,000 × 12% = $120

Being on paid leave does not switch super off. The leave pay for ordinary hours is still OTE.

For accountants & bookkeepers

The ATO works super out on OTE per the guidance in its "how much super to pay" material and its employer online course, using OTE × the SG rate (12% from 1 July 2025). Whether a pay item lands in the OTE base is the real judgement: overtime is excluded where ordinary hours are identified in an award or agreement; a bonus connected to ordinary hours is included; genuine expense allowances and reimbursements are excluded, while allowances that reward service are included; annual leave loading is OTE unless it clearly relates to lost overtime. Under the Payday Super changes the earnings base shifts to qualifying earnings from 1 July 2026 — worth keeping in view, but the method (base × rate) stays the same.

Example¶

Priya's Cafe pays Sam for a normal week of $1,000 in ordinary wages (illustrative). There is no overtime, no bonus and no allowance, so the whole $1,000 is OTE. Priya works out super as $1,000 × 12% = $120. The next fortnight Sam works some overtime worth $150 (illustrative). Priya leaves that $150 out of the OTE, so the overtime does not increase the super for that pay. The method never changes: find the OTE, multiply by 12%.

Common mistakes¶

Including overtime in the OTE total — overtime is normally left out.
Leaving a bonus out — a bonus that rewards ordinary work is usually included.
Multiplying by the wrong rate — the rate is 12% from 1 July 2025.
Treating every allowance the same — some count, some (expense reimbursements) do not.

How this works in myaccountant¶

In the app — you do not have to run these sums by hand. When you process a pay, myaccountant works out the super for each employee automatically, using the pay items that count towards super. It shows the super figure for each employee, and you can review it before you finalise the pay.

Key points¶

Super = OTE × the current rate (12% from 1 July 2025).
Every dollar figure in this lesson is illustrative and rounded.
Add up the OTE first, then multiply by 12%.
Overtime is normally left out of the OTE.
A bonus for ordinary work, and paid leave for ordinary hours, are normally included.
Some allowances count as OTE and some do not.

Learn next¶

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

Did this answer your question?