The compulsory employer superannuation rate will increase from the current 11.5% to 12% on 1 July 2025. This means from 1 July 2025 employers will be required to make superannuation contributions on behalf of employees at the rate of 12% of the employee’s “ordinary time earnings”.
An employee’s ordinary time earnings upon which superannuation contributions are calculated, includes not only wages and salary but commission and bonus entitlements. Subject to how the employee’s employment contract is constructed, it may be possible to absorb the superannuation increase into existing contractual arrangements. However, it is important that professional advice is sought prior to taking steps for any such absorption.
REEF can provide its members with guidance on this complex matter.
REEF has updated our three template “MEMOS” that can be issued to an employee affected by the change to superannuation. One template relates to employees on the base rate of pay plus superannuation, one for employees on either a debit-credit or target based structure and the third memo relates to commission-only employees.
These MEMOS can be downloaded from the REEF People Management System .
As always the REEF team are more than happy to help REEF members with their superannuation obligations. Please contact us on 1300 616 170 or [email protected] should you have any queries.
