If you are injured at work and receiving workers compensation, one question often gets overlooked while you focus on recovery: is super still being paid into your fund? For most injured workers, the answer is an unwelcome surprise — your employer’s compulsory super contributions usually stop the moment you stop working, and that gap can quietly cost you thousands of dollars in retirement savings over a long claim.
This guide explains the ATO rule that decides the issue, the exceptions that can keep your super flowing, the state differences, and how to protect your retirement balance while you recover.
The Short Answer: Usually No Super
In most cases, your employer is not required to pay superannuation on workers compensation payments while you are completely off work. That is the position under federal law, and it applies in New South Wales, Queensland, Western Australia, South Australia, Tasmania, the Northern Territory and the Australian Capital Territory.
The superannuation guarantee (SG) — currently 12% of ordinary time earnings — is only payable on earnings for work actually performed. Workers compensation payments are not wages for work performed; they are insurance-style payments that replace your income because you cannot work. With no work being done, there are no ordinary time earnings for the 12% to apply to.
There are important exceptions, though. Super can still be payable if you return to work on light or suitable duties, if your modern award or enterprise agreement requires it, or if you are a Victorian worker who has been on weekly payments for more than 52 weeks.
Why Workers Compensation Is Not Ordinary Time Earnings
The whole question turns on one concept: ordinary time earnings (OTE). Under the Superannuation Guarantee (Administration) Act 1992, an employer must pay SG contributions of 12% of each employee’s OTE into a complying super fund. OTE is, broadly, what you earn for your ordinary hours of work — base pay plus shift loadings, commissions and over-award payments.
The ATO’s ruling on this point, Superannuation Guarantee Ruling SGR 2009/2, draws a clear line. Payments made to an employee who is not required to attend work because of incapacity are not “salary or wages” and therefore are not ordinary time earnings. The ATO’s own list of payments that are ordinary time earnings confirms it: workers compensation counts as OTE only for hours the employee performs work or is required to attend work. The Fair Work Ombudsman takes the same position, describing the amount paid to an employee on workers compensation as an insurance payment, not a wage.
The payday super reforms that began on 1 July 2026 changed when super is paid (every payday, reaching your fund within 7 business days) — but workers compensation paid while you are not working still falls outside the base. Use our super calculator to see what your employer should be contributing on your normal pay.
How Much Super Could You Lose?
The table below shows the SG normally paid on common salaries, and what is lost over 13, 26 and 52 weeks off work.
| Annual ordinary time earnings | Normal SG per year (12%) | Lost over 13 weeks | Lost over 26 weeks | Lost over 52 weeks |
|---|---|---|---|---|
| $60,000 | $7,200 | $1,800 | $3,600 | $7,200 |
| $80,000 | $9,600 | $2,400 | $4,800 | $9,600 |
| $100,000 | $12,000 | $3,000 | $6,000 | $12,000 |
Even a minimum-wage worker is affected. On the national minimum wage of $26.44 per hour from 1 July 2026 — $1,004.90 a week for a 38-hour week — normal SG at 12% is about $120.59 a week. Six months off work means more than $3,100 in lost super. Check the figures for your own pay on our salary page for $80,000 a year or the $30-an-hour wage page.
State and Territory Differences
Workers compensation is run by the states and territories. The super position is broadly the same almost everywhere — with one major exception in Victoria.
| State / territory | Super on weekly compensation? | Notes |
|---|---|---|
| New South Wales | No | No super on weekly payments under the state scheme |
| Victoria | Yes — after 52 weeks | WorkSafe pays SG-rate contributions after 52 weeks of weekly payments |
| Queensland | No | Super is expressly excluded from “wages” used to calculate compensation |
| Western Australia | No | State legislation does not address super; the federal rule applies |
| South Australia, Tasmania, NT, ACT | No | No general statutory requirement to pay super on weekly benefits |
Victoria: Super After 52 Weeks on Weekly Payments
Under section 168 of the Workplace Injury Rehabilitation and Compensation Act 2013 (Vic), a worker becomes entitled to super contributions on their weekly payments once those payments have been made for an aggregate period of 52 weeks, provided the payments have not ceased and the worker has not reached retirement age. Contributions are paid at the 12% SG rate on gross weekly payments, and do not reduce the weekly payments.
WorkSafe Victoria confirms the criteria: injured on or after 5 April 2010, weekly payments for an aggregate of 52 weeks, still receiving weekly payments, not at retirement age, and not already receiving super from your employer. If you are eligible, your WorkSafe agent makes the contributions into a fund you nominate — complete a “Choice of superannuation fund” form and give it to your agent within three months of your super entitlement date. The entitlement continues while you keep receiving weekly payments, even if you have returned to some paid work. No other state has an equivalent safety net.
The Three Exceptions That Keep Super Flowing
Federal law sets the floor, not the ceiling — super often keeps flowing during a claim for other reasons.
1. You return to work on suitable or light duties
If you come back on a graduated return-to-work program and your employer pays you wages for the hours you actually work, those wages are ordinary time earnings and your employer must pay 12% SG on them. What does not attract super is the top-up: if you work 15 hours of light duties but receive a top-up from the insurer to bring your income up to a full 38-hour week, super is only payable on the 15 hours of wages.
2. Your award or enterprise agreement requires it
Many modern awards and enterprise agreements require employers to keep paying super while an employee is on workers compensation, even when the employee is doing no work at all — commonly the Building and Construction General On-site Award, the Cleaning Services Award, and some hospital and manufacturing awards, often for 12 to 52 weeks. These obligations sit on top of the federal rules, so your employer must honour them. Look up your award or agreement on the Fair Work Commission website, or ask your union — this is the most likely reason you might be entitled to super you are not receiving.
3. Your employer chooses to keep paying
Nothing stops an employer from voluntarily continuing super contributions during a workers compensation absence, and some do so as part of an injury management or retention policy. It is not common, but it is worth asking about. Any voluntary contributions still count toward your concessional contributions cap, which is $30,000 for 2025–26 (rising to $32,500 from 1 July 2026).
Voluntary Contributions
If your employer is not paying super while you are on workers compensation, you can make voluntary contributions to keep your balance growing. A personal deductible contribution is money you transfer into your fund and claim as a tax deduction in your return — you must give your fund a valid notice of intent to claim a deduction and receive its acknowledgement before you lodge. The contribution is taxed at 15% inside the fund instead of your marginal tax rate. Note that weekly compensation payments are generally assessable income, so they count towards your taxable income for the year.
The other option is a non-concessional (after-tax) contribution: money put in from after-tax income with no deduction claimed, under the $120,000 cap for 2025–26 (rising to $130,000 from 1 July 2026). Check your cap room first through ATO online services, and be realistic about affordability: if your budget is tight on a reduced compensation income, topping up super should come after essential living costs. Even $50 a week keeps your fund growing.
What to Check on Your Payslips
A short monthly check can catch super problems early:
- Separate the components. Your payslip should show wages for hours worked and workers compensation top-up payments as separate lines.
- Confirm the money actually arrived. Since 1 July 2026, payday super means employer SG must reach your fund within 7 business days of each payday. Check your fund’s app or your ATO online super account.
- Check your award or agreement. If your award requires super during workers compensation, it should continue even while you are fully off work. If it has stopped, ask your employer why — in writing.
If super that should have been paid was not, raise it with your employer in writing first. If that does not resolve it, you can lodge an enquiry with the ATO, which can investigate and impose the super guarantee charge — including interest and administration fees — on the employer.
Frequently Asked Questions
Is super paid on workers compensation in Australia?
Generally no. Payments to a worker who is not performing any work are not ordinary time earnings under the Superannuation Guarantee (Administration) Act 1992 and the ATO’s ruling SGR 2009/2, so the 12% SG is not payable. Exceptions: wages for light duties actually worked, awards or agreements that require it, and Victoria’s entitlement after 52 weeks of weekly payments.
Does my employer pay super if I return on light duties?
Yes — on the wages for the hours you actually work. If you work 15 hours of suitable duties, your employer owes 12% SG on those 15 hours of wages. The insurer’s top-up payment that brings your income up to your pre-injury level does not attract super.
How does the Victorian 52-week super rule work?
Under section 168 of the Workplace Injury Rehabilitation and Compensation Act 2013 (Vic), once you have received weekly payments for an aggregate of 52 weeks and still receive them, you become entitled to super at the SG rate on your gross weekly payments, paid by your WorkSafe agent into a fund you nominate (injured on or after 5 April 2010, and not at retirement age).
Can I make voluntary super contributions while on workers compensation?
Yes — personal deductible contributions (taxed at 15% inside your fund, up to the $30,000 concessional cap for 2025–26) or after-tax non-concessional contributions (up to the $120,000 cap). Lodge a notice of intent to claim a deduction with your fund before claiming it at tax time.
What should I do if my super has stopped but my award says it should continue?
Confirm the requirement on the Fair Work Commission website, then raise it with your employer in writing, quoting the clause. If payments do not resume, contact your union if you are a member, and report unpaid super to the ATO, which can investigate and recover the shortfall plus interest.
Conclusion
The federal rule is clear: if you are not working, your workers compensation payments are not ordinary time earnings, and the 12% super guarantee does not apply. But the rule is not the whole story. Light duties restart the obligation on the hours you work, many awards and enterprise agreements require contributions to continue, and Victoria pays super on weekly payments after 52 weeks. Knowing which applies to you can be worth thousands of dollars.
Check your award or agreement, read your payslips every month, confirm contributions are actually reaching your fund, and consider a modest voluntary contribution while you recover. Your recovery comes first — but your retirement savings should not be a casualty of your injury.
Want to see how much super your normal pay should be generating? Use our free super calculator to work out your employer’s SG contributions at the 12% rate, and compare that with what is actually landing in your fund.