How much super does my employer pay?
Have you ever wondered and ask yourself, “How much super does my employer pay?” Do you feel overwhelmed when trying to work out what percentage of your wage should go into your super fund? If you’re an Australian looking for financial advice, understanding the ins and outs of superannuation can feel complex – but we’ve got some tips to help break it down.
Keep reading to learn more about calculating how much superannuation your employer contributes on a regular basis.
Superannuation Guarantee
In Australia, the superannuation guarantee system is designed to provide all Australians with a secure future by ensuring employers help their employees save for retirement. Under this system employers are legally required to pay an amount equivalent to 11% (for 2023-24, rising to 11.5% for 2024-25) of an employee’s earnings into their chosen super fund, in most cases on a quarterly basis.
Payments may be higher or lower depending on how much an individual earns and government regulations; how much super your employer pays you can easily be found by checking your most recently issued payment statement. It’s not just wages that contribute to your super; you can also add extra funds from salary sacrifice or other sources, so it’s worth exploring how these might be able to benefit you in the future.
How much super does my employer pay in Australia?
Currently, employers must make regular contributions of at least 10.5% of an employee’s ordinary time earnings into a superannuation fund – this is known as the Superannuation Guarantee (SG). In Australia, how much superannuation guarantee your employer must pay you depends on how much you earn. These payments are required by law and are intended to help Australians secure their financial future by allowing them to start building up funds for when they retire. All employers in Australia must meet these minimum requirements and payment rates can increase on 1 July each year in-line with changes to the SG rate as legislated by the Australian Government.
Knowing how much your employer pays into your superannuation fund each month will help you track how much is accumulating for when you finish working. Making sure your employer is paying the correct amount into your super fund should be part of how you plan for retirement.
What should I do if I'm not getting the full superannuation guarantee from my employer ?
If you think your employer is not paying you the full superannuation guarantee, it’s important to take action. Firstly, it’s a good idea to check how much super your employer should be paying you each quarter and how much they have actually paid into your super fund. It’s also a good time to look at how often they make the payments – should they be paying weekly, monthly, or quarterly?
Seek the advice of your accountant or financial planner if you need further assistance or believe that you are entitled to more money than what has been paid into your super account. You can also contact the Australian Taxation Office if you wish to take further action as it’s important that all employers meet their superannuation guarantee obligations.
What are some of the benefits of having a good superannuation fund?
Having a good superannuation fund is essential for your future financial security and can make all the difference in how much money you have when it’s time to retire. When you understand how much your boss contributes to your superannuation, how that contribution varies according to how long you have been employed and how this affects how much you will receive on retirement, these are all benefits of a good superannuation fund. Your employer could contribute 11% or even higher in some cases, depending on how long you’ve worked with them; if they contribute more than 11%, this is an additional advantage of having a good superannuation fund that should not be overlooked.
Investing early into your superannuation is integral to amassing enough savings for retirement and good funds typically include different risk profiles so investors can choose one which best suits their objectives. So having access to many choices that allow you to tailor-make the right superannuation package for yourself is another benefit of having a quality fund.
How can I make sure my superannuation fund is as good as it can be?
It’s important to ensure that your superannuation fund is performing as best it can. To do this, you should regularly review how your super is invested and how much you are contributing, as well how much your employer pays into your super every month. It’s also a good idea to compare different funds available on the market and understand how fees can affect the performance of your super fund over time. Documenting how well your fund performs each year can help give you an indication of how suitable it is for your long-term financial goals.
Regardless of how much your employer is paying into your superannuation, it’s always a good idea to check in and make sure that you’re on track for a comfortable retirement. The best way to do this is to get in touch with Wealth Factory and speak to our expert financial planner. We can help you understand your options and make the best decisions for your future.
