Super Guarantee to Increase to 10%
The minimum percentage employers are required to pay increases to 10% due on 1st July 2021.
The superannuation guarantee is paid in addition to the base salary. An employee currently earning a gross income of $60,000 (less personal income tax withheld) also receives an additional $5,700 superannuation guarantee (9.5% of the base salary) to their nominated superannuation fund. Total income $65,700.
With the super guarantee increase to 10%, this employee’s salary will remain at $60,000 but then receive an additional $6000 to their fund. Total income $66,000.
This could be considered in part, a wage increase.
An employee on a minimum award wage cannot be paid less than the minimum rate already being paid, so therefore the SG at 10% is to be calculated on top of and without reduction to the original base amount.
Mark the date 1st July 2021 in your calendar as the date your business will need to adjust their payroll systems to pay the increased amount of super.