From 1 July 2025, the superannuation guarantee rate is 12% of your ordinary time earnings. This is the final step in a legislated schedule of increases that began back in 2021 — and there are no further increases scheduled. If you work in Australia, this is the minimum percentage your employer must contribute to your super fund, on top of your salary. In this guide we explain exactly what the 12% rate means for you, who is eligible, how much your employer should be paying, and how to check you are actually receiving it.
What is the superannuation guarantee rate?
The superannuation guarantee (SG) is the minimum amount your employer is legally required to pay into your superannuation fund. It is calculated as a percentage of your ordinary time earnings (OTE) — essentially your regular wages or salary for ordinary hours worked, including commissions, shift loadings and most paid leave, but generally excluding overtime.
For the 2025–26 financial year, that percentage is 12%. So if your ordinary time earnings are $80,000 a year, your employer must contribute at least $9,600 to your super fund over the year. This money is paid in addition to your salary, not taken out of it — unless your employment contract specifically describes your package as inclusive of super, in which case the 12% is built into the total figure.
The SG exists so that Australians build retirement savings throughout their working lives. Because contributions compound over decades, even small differences in the rate — or missed payments — can translate into tens of thousands of dollars by retirement.
Superannuation guarantee rate history: how we got to 12%
The SG rate did not jump to 12% overnight. It climbed in half-percentage-point steps over five years:
| Financial year | SG rate |
|---|---|
| 2021–22 | 10% |
| 2022–23 | 10.5% |
| 2023–24 | 11% |
| 2024–25 | 11.5% |
| 2025–26 | 12% |
The increase from 11.5% to 12% on 1 July 2025 was the last scheduled rise. Under current legislation, 12% is the permanent rate — any future change would require new laws to be passed. For employees, the practical effect is straightforward: your employer’s compulsory contributions are now at their highest level ever.
Who is eligible for superannuation guarantee payments?
Most people who work in Australia are entitled to SG contributions. You are generally covered if:
- You are 18 or older and paid as an employee — this includes full-time, part-time and casual workers.
- You are under 18 and work more than 30 hours per week.
- You are a temporary resident working in Australia.
- You are a company director paid as an employee of the company.
Two important points catch many people by surprise. First, the old rule that you had to earn at least $450 a month before your employer had to pay super was abolished on 1 July 2022. There is no minimum earnings threshold anymore — even if you earn a small amount from a casual or part-time job, your employer must still pay super on it.
Second, some contractors paid wholly or principally for their labour may also be entitled to SG, even if they have an ABN. If you are unsure, check with the ATO or get advice — many contractors miss out on super they are legally owed.
How much must your employer pay in 2025–26?
The calculation is simple: 12% × your ordinary time earnings. Here is what that looks like at common salary levels:
| Annual salary (OTE) | Employer SG at 12% | Per quarter |
|---|---|---|
| $60,000 | $7,200 / year | $1,800 |
| $80,000 | $9,600 / year | $2,400 |
| $90,000 | $10,800 / year | $2,700 |
| $100,000 | $12,000 / year | $3,000 |
| $150,000 | $18,000 / year | $4,500 |
Want a figure for your exact salary? You can work out your super in seconds with our free superannuation calculator.
The maximum contribution base
There is an upper limit. For 2025–26, the maximum contribution base is $62,500 per quarter. This means your employer is not required to pay SG on earnings above that quarterly amount — roughly $250,000 a year. Many employers keep contributing on the full salary anyway, but legally the obligation stops at the cap.
Is super on top of your salary, or included?
By default, SG is paid on top of your salary. A $100,000 salary plus 12% super means $12,000 goes into your fund and you still receive the full $100,000 (before tax). However, some contracts quote a package that is inclusive of super — for example, “$100,000 including super” means roughly $89,286 in salary plus $10,714 in super contributions. Always check your contract and offer letter so you know which arrangement applies to you.
How to check you are being paid the right amount
Unpaid super is one of the most common workplace issues in Australia, and many employees never notice. Here is how to verify your contributions:
- Check your payslip. Your employer should show super contributions on each payslip. Multiply your ordinary time earnings for the period by 12% and compare.
- Check your super fund. Log in to your super fund’s website or app and look at the transaction history. Remember that contributions can take some time to appear after payday.
- Check myGov. Link your myGov account to the ATO to see employer contributions reported for you. This is the official record.
- Do the maths annually. Add up a full year of contributions and confirm the total equals roughly 12% of your ordinary time earnings (up to the quarterly cap).
If the numbers do not add up, raise it with your employer or payroll team first — genuine mistakes happen. If the issue is not fixed, you can report unpaid super to the ATO, which can investigate and recover what you are owed.
What happens if your employer does not pay?
Employers who fail to pay SG on time become liable for the superannuation guarantee charge (SGC). This is not just the missing amount — it includes interest on the shortfall from the due date, plus an administration fee per employee. In serious cases, additional penalties can apply, and company directors can be held personally liable for unpaid amounts.
The SGC is deliberately harsher than simply paying late, because late super costs employees investment returns they can never get back. The message from the ATO is clear: pay on time, every time.
Payday Super is coming: what changes on 1 July 2026
From 1 July 2026, new Payday Super rules take effect. Instead of the current system where employers can pay super quarterly, employers will be required to pay SG contributions at the same time as wages — with the money reaching your super fund within 7 business days of payday.
For employees, this is good news: your super will start compounding sooner, and it will be much easier to spot a missed payment because contributions should appear in your fund shortly after every pay. If you check your super fund app after payday and the deposit is not there within about a week, something is wrong.
A note on the concessional contributions cap
Your employer’s SG contributions count towards the concessional contributions cap, which is $30,000 per year for 2025–26. This cap covers all before-tax contributions, including SG and any salary sacrifice amounts.
For example, if you earn $100,000, your employer’s $12,000 in SG contributions leaves you $18,000 of cap space. You could salary sacrifice up to that amount into super and have it taxed at just 15% in the fund instead of your marginal tax rate — a strategy worth considering if you are on a higher income. Try our salary sacrifice calculator to see how the numbers work for your situation. If total concessional contributions exceed the cap, the excess is added to your assessable income and taxed at your marginal rate, so it pays to keep track.
Frequently asked questions
What is the superannuation guarantee rate for 2025–26?
The superannuation guarantee rate is 12% of ordinary time earnings from 1 July 2025. This was the final legislated increase, up from 11.5% in 2024–25, and no further increases are currently scheduled.
Do casual and part-time workers get super?
Yes. Casual, part-time and full-time employees aged 18 and over are all entitled to SG contributions. The old $450-per-month minimum earnings threshold was abolished on 1 July 2022, so there is no minimum amount you need to earn.
How much super will I get on an $80,000 salary?
On $80,000 of ordinary time earnings, your employer must contribute 12%, which is $9,600 per year (about $2,400 per quarter), paid on top of your salary. On $100,000, it is $12,000 per year.
Is super paid on top of my salary or included in it?
By default it is paid on top of your salary. But some employment contracts quote a package that is inclusive of super — always check your contract to see which arrangement applies.
What is the maximum super my employer has to pay?
For 2025–26, the maximum contribution base is $62,500 per quarter. Employers are not required to pay SG on earnings above that amount (roughly $250,000 a year), though many choose to.
What should I do if my employer is not paying my super?
First, check your payslips, super fund transactions and myGov records to confirm. Then raise it with your employer — it may be an error. If it is not resolved, report unpaid super to the ATO, which can investigate and apply the superannuation guarantee charge.
The bottom line
The superannuation guarantee rate of 12% for 2025–26 is a milestone: the highest compulsory super rate Australia has ever had, and the end of a five-year climb. Make sure you are actually receiving it — check your payslips, watch your fund balance, and remember that from 1 July 2026, Payday Super means contributions should land in your fund within days of each payday, not months later.
To see exactly what your employer should be contributing on your salary, work out your super with our free calculator — and if you are thinking about topping up your contributions, our salary sacrifice calculator shows how much tax you could save.