Superannuation
Employer Super Guarantee (SG)
The mandatory superannuation contribution your employer must pay on top of your salary, currently 12% of your qualifying earnings - the final rate reached after years of legislated increases, with no further scheduled rises.
A brief history
The SG rate has climbed steadily since it was introduced, from 9.5% for several years up to 2021, through annual 0.5% increases, reaching 12% from 1 July 2025. That's now the endpoint of the legislated schedule - there's currently no further increase planned.
What it's calculated on
Historically, SG was calculated on ordinary time earnings (OTE) - broadly what you earn for your ordinary hours of work, including commissions, shift loadings and some allowances, but not overtime. From 1 July 2026, this changed to a broader measure called qualifying earnings (QE), which folds in OTE plus salary sacrificed super contributions and some other payments that previously sat outside the calculation - so the base your SG is calculated on is now slightly wider than before.
The maximum contribution base
Employers aren't required to pay SG on earnings above a yearly cap - the maximum contribution base, which is $270,830 for 2026-27. Once your qualifying earnings for the year hit this figure, your employer can stop paying SG for the rest of the financial year (unless an award or enterprise agreement requires more). In dollar terms, that caps the maximum compulsory SG anyone receives at $32,499.60 a year - just under the concessional contributions cap of $32,500.
Payday Super
From 1 July 2026, SG moved from a quarterly payment cycle to Payday Super: employers must now pay your SG into your fund within 7 business days of each payday, rather than by a quarterly due date. This is a timing change only - it doesn't affect the 12% rate itself, just how frequently it has to land in your account.
Employer SG counts toward your concessional contributions. For current rates and thresholds, see the ATO's Super guarantee page.
Related terms
See it in your plan
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