Whether an employer must pay the additional amount of superannuation to a salaried employee will depend on the terms of the employment agreement. In broad terms, employment agreements tend to express a salary package as either inclusive or exclusive of superannuation.
An example of a salary that is inclusive of superannuation might say something like “your total salary package is $100,000 inclusive of superannuation.”
This sort of clause will generally mean that an employee will not need to increase the total remuneration paid to the employee, as the increase in superannuation will be apportioned from the total package. It is still important to ensure that the employee receives more under the salary than they would receive under any applicable award or enterprise agreement, as absorbing the superannuation will effectively reduce the employee’s take-home wages.
An example of a salary that is exclusive of super might say something like “your remuneration will comprise a base salary of $100,000, plus 9.5% superannuation contributions.” This sort of situation will generally mean that an employer must continue to pay the $100,000 base salary, and increase the amount of superannuation to comply with the new superannuation guarantee rate.
Overall, it is important to note that salary clauses like the above are contractual terms, and the final answer will always depend on the terms of the individual contract and any enterprise agreement. Where there is any uncertainty, it is recommended that employers seek legal advice. Employers can call 1300 55 66 77 to seek advice from Ai Group Workplace Lawyers about the interpretation of contracts.
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