How much super to pay
Content
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
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
