Paying super on leave

Let’s break it down, so you can get on with the day-to-day running of a business.

Is super paid on annual leave? What about other types of leave, like sick leave and personal leave?

It depends on whether it's part of the amount your employees earn during their normal work hours – which is called ordinary time earnings (OTE).

If yes, you must pay 12% of OTE into your employee’s fund as part of the super guarantee (SG)1.

Some businesses pay their employees more super as part of an employee benefit or enterprise agreement, so it’s worth checking what agreements you have in place.

When to pay super on leave

See whether you need to pay super on leave in the table below.

When you look at this table, note that OTE is the amount you pay employees for their ordinary hours of work, including commissions and shift loadings. 

If there is a tick against ‘OTE’ for a specific payment below, you’ll need to pay 12% super against it. If there is a cross, you generally don’t have to pay super on that amount3.

 
Payment type Salary and wages ordinary time earnings (OTE)
Annual leave
Leave loading: clearly linked to lost overtime4
Leave loading: all other
Sick leave (includes carers or personal leave)
Long service leave
Termination payments – unused annual leave, long service leave or sick leave
Parental leave
Jury duty
Defence Forces services leave
Family and domestic violence leave

Super on government funded parental leave pay

Under the new superannuation on Parental Leave Pay legislation, eligible parents with babies born or adopted on or after July 1, 2025 will receive a superannuation contribution to their nominated super fund. This contribution will be based on the superannuation guarantee, which is 12% of their Parental Leave Pay.

The Australian Taxation Office (ATO) will make lump sum payments, including interest, to your employee’s superannuation fund starting in July 2026. These payments will occur after the end of each financial year in which the Parental Leave Pay was received. As an employer, you do not need to take any action regarding these payments, and you can still make other super contributions.

Parents will continue to apply for Parental Leave Pay through Services Australia, who will assess eligibility for both the payment and the superannuation contribution.


Learn more


What if I missed a super payment?

Not paying super on time may result in penalties and interest charges from the ATO, such as the Superannuation Guarantee Charge (SGC). You use salary and wages to work out the SGC. Salary and wages are similar to OTE but also include any overtime payments2.

Find out more about what happens if you don’t pay super or visit the ATO.

 

No super to pay?

If you don't have any super to pay this quarter simply fill out this form. Get your employer reference number and ABN ready, and we’ll guide you through the rest. Note that you can fill out this form in the Business Portal too.

Need to pay your employees super?

Need to pay your employees super? Get started today with the QuickSuper clearing house5.

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