Super Calculation on Salary: How Australia’s Minimum Wage and Award Rates Affect Your Pay

Super Calculation on Salary: What Every Employee and Employer Should Know

Super calculation on salary is a key part of understanding your total remuneration in Australia. From 1 July 2026, employers must pay super guarantee at 12% of each eligible employee’s qualifying earnings – a term introduced by the ATO for Payday Super. This guide explains how super interacts with the national minimum wage, award rates, and negotiated salaries, and why it is always an employer cost on top of your pay.

The Legal Minimum Wage vs. Award Coverage

The Fair Work Commission sets the national minimum wage each year. As of 1 July 2026, the adult national minimum wage is $26.44 per hour or $1,004.90 per week for a 38‑hour week. However, this rate only applies to employees who are not covered by a modern award or registered enterprise agreement. Most Australian employees work under an award that sets higher minimum pay rates, including penalty rates and allowances. The Fair Work Ombudsman explains that awards cover many industries and occupations, so it is essential to check which award applies to your job.

For award‑free employees, junior rates apply based on age. For example, a 16‑year‑old award‑free employee must be paid at least $12.51 per hour (47.3% of the adult rate), and a casual employee of that age receives $15.64 per hour including casual loading. Apprentices and trainees have their own minimum rates under the Miscellaneous Award. These lower rates are legal, but only for award‑free workers. If you are covered by an award, the award’s classification rates – which are often higher – apply instead.

How Super Calculation on Salary Works

Super is calculated on your ordinary time earnings. The ATO defines ordinary time earnings as payments for ordinary hours of work, including shift penalties, casual loading, paid leave, certain allowances, and bonuses. From 1 July 2026, the ATO uses the term ‘qualifying earnings’ for super guarantee purposes. This includes all ordinary time earnings plus commissions and salary sacrifice amounts that would have been ordinary time earnings. Overtime is generally not included unless it is part of your ordinary hours under an award or agreement.

The super guarantee rate is 12% of qualifying earnings. For example, if your weekly ordinary time earnings are $1,000, your employer must contribute $120 to your super fund. This is on top of your $1,000 salary – super is not deducted from your pay. The maximum contribution base for 2026–27 is $270,830 per year, meaning super is not required on earnings above that amount.

Award Rates vs. the National Minimum Wage

Even if an award’s minimum rate is higher than the national minimum wage, the super calculation on salary still uses your ordinary time earnings under that award. For example, the General Retail Industry Award 2020 might set a rate of $28 per hour for a sales assistant. Super is 12% of that $28, not of the national minimum wage. Some awards also require super on additional payments such as overtime or loadings – check your award for details.

From 1 July 2026, modern award minimum wages rose by 4.75%, but the lowest ongoing classification cannot fall below the national minimum wage of $26.44 per hour. Introductory rates (limited to the first six months) cannot be less than $25.74 per hour or $978.10 per week. These award rates are the legal floor for that industry, and super is calculated on top.

Survey Averages and Negotiated Salaries

The Australian Bureau of Statistics (ABS) reported in May 2026 that full‑time adult ordinary‑time earnings averaged $2,083.70 per week. This is well above the national minimum wage and most award rates. For employees earning above the award, super is still calculated on their ordinary time earnings – typically their base salary plus any allowances or bonuses that count as ordinary time earnings. Negotiated salaries often include a total package figure, but it is important to know how much is salary and how much is super. For example, a total package of $100,000 might include $89,286 salary plus $10,714 super (12%). Always clarify whether the advertised figure includes super.

Key Takeaways

• Super is an employer contribution on top of your salary, not part of the minimum wage.
• The national minimum wage is $26.44 per hour, but most employees are covered by an award with higher rates.
• Junior, apprentice, and introductory rates can be lower than the adult minimum.
• Super is calculated on ordinary time earnings (qualifying earnings from 1 July 2026) at 12%.
• Check your award or enterprise agreement for any additional super obligations.

For more details, see our Which minimum wage applies guide and our Rate tables for current award and national minimum rates.

Frequently Asked Questions

Is super calculated on my gross salary or on my base rate? Super is calculated on your ordinary time earnings, which for most employees is the gross amount you receive for your ordinary hours of work, including shift penalties, casual loading, and certain allowances. From 1 July 2026, the ATO uses the term ‘qualifying earnings’ – this includes all ordinary time earnings plus commissions and salary sacrifice amounts that would otherwise be ordinary time earnings. Overtime payments are generally not included unless they are part of ordinary hours under your award or agreement.

Does the super guarantee count towards meeting the minimum wage? No. The super guarantee is an employer contribution paid on top of your salary or wages. It does not form part of the minimum wage you must receive. The Fair Work Ombudsman states that the minimum wage is the amount of pay before tax, and super is an additional payment to your super fund. Your take‑home pay must be at least the relevant minimum wage, and your employer must also pay 12% super on your ordinary time earnings.

What if my award or enterprise agreement says something different about super calculation? A modern award or enterprise agreement can set a higher super contribution rate than the 12% statutory minimum. For example, some awards require super on all earnings including overtime. However, the award cannot reduce the super guarantee below 12% of qualifying earnings. Always check your award or agreement for any extra super obligations. The Fair Work Ombudsman’s Pay and Conditions Tool can help you find the correct rates for your award.

For the published floors, see the rate tables and how the figures work.