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How much super to pay

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Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Home / Business / Super for employers / How much to pay /

Checklist: Salary or wages and ordinary
time earnings
The tables in this checklist will help you identify what payments are considered
salary or wages and whether they are considered part of ordinary time
earnings (OTE) for super guarantee purposes. The list is not exhaustive and is
for general guidance only. The payment-type tables are:
• Awards and agreements
• Allowances
• Expenses
• Leave
• Termination payments
• Bonuses

Awards and agreements

Payment

Overtime hours – award stipulates ordinary
hours to be worked and employee works
additional hours for which they are paid
overtime rates

Salary or
wages

Ordinary time
earnings
(OTE)

Yes

No

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--s... 19/10/2015

Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Overtime hours – agreement prevails over
award

Yes

No

Agreement supplanting award removes
distinction between ordinary hours and
other hours

Yes – all
hours
worked

Yes – all hours
worked

No ordinary hours of work stipulated

Yes – all
hours
worked

Yes – all hours
worked

Yes
Yes

Yes
No

Casual employee whose hours are paid at
overtime rates due to a 'bandwidth' clause

Yes

No

Piece-rates – no ordinary hours of work
stipulated

Yes

Yes

Overtime component of earnings based on
hourly-driving-rate method stipulated in
award

Yes

No

Casual employee:
• shift loadings
• overtime payments

Allowances
Salary or
wages

Ordinary time
earnings (OTE)

Allowance by way of unconditional
extra payment

Yes

Yes

Expense allowance expected to be
fully expended

No

No

Payment

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--s... 19/10/2015

Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Danger allowance

Yes

Yes

Retention allowance

Yes

Yes

Hourly on-call allowance in relation to
ordinary hours of work for doctors

Yes

Yes

Expenses

Payment

Salary or
wages

Ordinary time earnings
(OTE)

Reimbursement

No

No

Petty cash

No

No

Reimbursement of travel
costs

No

No

Payments for unfair
dismissal

No

No

Yes
No

Yes
No

Workers' compensation:
• returned to work
• not working

Leave

Payment

Salary or
wages

Ordinary time
earnings (OTE)

Annual leave

Yes

Yes

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--s... 19/10/2015

Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Parental leave – eg, maternity leave,
paternity leave, adoption leave

No

No

Ancillary leave – eg jury duty,
defence reserve service

No

No.

Termination payments

Payment
Termination
payments:
• in lieu of notice

Salary or
wages

Ordinary time earnings
(OTE)

Yes
Yes

Yes
No

• unused annual
leave

Bonuses

Payment

Salary or
wages

Ordinary time
earnings (OTE)

Performance bonus

Yes

Yes

Bonus labelled as ex-gratia but in
respect of ordinary hours of work

Yes

Yes

Christmas bonus

Yes

Yes

Bonus in respect of overtime only

Yes

No

Last modified: 01 Jun 2015

QC 33860

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--s... 19/10/2015

Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Our commitment to you
We are committed to providing you with accurate, consistent and clear information
to help you understand your rights and entitlements and meet your obligations.
If you follow our information and it turns out to be incorrect, or it is misleading and
you make a mistake as a result, we will take that into account when determining
what action, if any, we should take.
Some of the information on this website applies to a specific financial year. This is
clearly marked. Make sure you have the information for the right year before making
decisions based on that information.
If you feel that our information does not fully cover your circumstances, or you are
unsure how it applies to you, contact us or seek professional advice.

Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute this material as you
wish (but not in any way that suggests the ATO or the Commonwealth endorses
you or any of your services or products).

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--s... 19/10/2015

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