Is super paid on overtime? 

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Whether you’re working in payroll or working extra hours to pocket some overtime for yourself – you might expect your super contributions to receive a little extra too. But in most cases, employers don’t have to pay super on overtime hours. Chances are, only the Ordinary Time Earnings (OTE) you receive impact your super.  


What are Ordinary Time Earnings (OTE)

Ordinary time earnings (OTE) are the amount you earn for your ordinary hours of work. This is the figure your employer uses to calculate the minimum super contribution they need to pay. 

While OTE might sound straightforward, your pay can include different types of earnings. Not everything your employer pays you will count towards OTE. For example, if you’re a nurse picking up an extra weekend shift, or a retail worker doing paid overtime during a busy period, those extra hours might not attract extra super.  

Ordinary time earnings typically include: 

  • pay for your ordinary hours of work
  • annual leave
  • bonuses (excluding those earned outside ordinary hours of work)
  • commissions (excluding those earned outside ordinary hours of work)
  • shift loadings

 Some things that don't count as ordinary time earnings:  

  • overtime pay (provided your ordinary hours of work are clearly identified)
  • expense allowances
  • reimbursements of expenses.  
For more information on ordinary time earnings, check out the Australian Taxation Office (ATO).

 Times when you overtime does contribute to super  

All that said, there are a few exceptions where overtime does mean more super contributions. These are times like:

  • When overtime is built into an all-inclusive salary package
  • If your award or enterprise agreement specifically includes overtime in super calculations
  • When your ordinary hours aren't clearly defined (meaning all hours might be considered ordinary)
  • Some government and public sector employers have different contribution arrangements.

These situations are less common, but if you think you might fall into one of these categories, it's worth checking with your employer or the ATO to be sure.   

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