Superannuation Basics
Superannuation, or Super, is the most common retirement savings vehicle for Australians. It is funded by what is called the “Superannuation Guarantee” that means employers must pay contributions to your super fund, generally 9% of your gross salary.
This is required for all eligible employees, that is, employees who are over 18 years, but under 70 years, paid at least $450 gross in a calender month, and, if under 18 years, work at least 30 hours a week.
There is a slight caveat though, that stipulates this is only payable on “ordinary” hours. What are “ordinary hours”? Generally it includes ordinary pay, shift loadings and commission.
There are many other rules and regulations regarding super. Your employer is required to pay it by law, and if they don’t can be subject to fines or charges. Your super fund has its own strict set of guidelines it must adhere to, and it is in your best interest to know what those are.
And yes, that is experience speaking.
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I would add that the 9% is the compulsory employer contribution and should not be regarded by people as sufficient to fund their retirement. You need to add your own contributions to get a decent retirement income.