What is the Super Guarantee?¶

If you employ people, the law says you must pay super for them. The Super Guarantee (often shortened to SG) is the minimum amount of super an employer has to pay for each eligible worker. It is not optional, and it is on top of the wages you pay.

The amount is worked out as a percentage of what the worker earns. The Australian Taxation Office (the ATO) sets the rate and oversees the whole system.

In one line

The Super Guarantee is the minimum super an employer must pay for eligible workers — 12% of their ordinary time earnings from 1 July 2025.

Why this matters¶

Super is one of the main obligations that comes with hiring people. Getting it right keeps your workers' retirement savings on track and keeps you on the right side of the ATO. Paying the wrong amount, or paying late, can lead to extra charges — so it pays to understand the basics before your first pay run.

What you will learn¶

What the Super Guarantee is
The Super Guarantee rate that applies from 1 July 2025
That it is a legal obligation the ATO oversees

Understanding the concept¶

The Super Guarantee is the minimum super an employer must contribute for their eligible workers. You pay it into each worker's chosen super fund, on top of their wages.

The amount is a set percentage of the worker's earnings. The ATO explains that from 1 July 2025 the Super Guarantee rate is 12%. This was the final step in a series of planned rises — the rate was 11.5% before that date.

The percentage is not applied to every dollar you pay. It is applied to a specific base called ordinary time earnings (OTE) — broadly, what a worker earns for their ordinary hours of work. A separate lesson covers exactly which payments count.

Because the Super Guarantee is set in law, the ATO oversees it. The ATO decides who is eligible, sets the rate, and can act if super is underpaid or paid late.

For accountants & bookkeepers

The ATO notes an employer may pay super at a rate higher than 12% if an award or agreement requires it — 12% is the legal minimum, not a cap. The ATO also describes the 12% rate as applying to salary and wages paid on or after 1 July 2025, even where the pay period straddles that date.

Example¶

Priya runs Priya's Cafe and employs Jordan. Jordan earns wages for the ordinary hours worked in a pay period. On top of those wages, Priya must work out 12% of Jordan's ordinary time earnings and pay that amount into Jordan's super fund. The super is extra — it does not come out of Jordan's wages. Priya sends the wages to Jordan and the super to Jordan's fund.

Common mistakes¶

Thinking super comes out of the worker's wages — it is paid on top of them.
Working out super on the full amount paid rather than on ordinary time earnings.
Assuming super is optional for small or casual workforces — it is a legal duty.
Using an old rate — the rate is 12% from 1 July 2025.

How this works in myaccountant¶

In the app — when you run a pay run, myaccountant works out the super owed on each worker's pay from their ordinary time earnings, using the current rate. It shows the super amount alongside the wages, so you can see what is owed before you finalise the pay.

Key points¶

The Super Guarantee is the minimum super an employer must pay for eligible workers.
It is worked out as a percentage of ordinary time earnings.
The rate is 12% from 1 July 2025.
Super is paid on top of wages, not taken out of them.
It is a legal obligation the ATO oversees.

Learn next¶

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

Did this answer your question?