Is super paid on overtime? It depends on whether it's part of the amount your employees earn during their normal work hours – which is called Qualifying Earnings (QE).
For overtime, the answer is usually ‘no’. This is because it mostly falls outside QE.
For bonuses, the answer is usually ‘yes’. This is because it’s mostly part of QE.
If yes, you must pay 12% of QE 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 do you pay super on overtime?
Check out the table below for different types of overtime and bonuses.
When you look at the table, note that QE is the amount you pay employees for their ordinary hours of work, including commissions and shift loadings.
If there is a tick against ‘QE’ for a specific payment below, you’ll need to pay 12% super against it. If there is a cross, you don’t have to pay super on that amount3.
Overtime, casual and piece work
| Payment type | Salary or wages | Qualifying Earnings (QE) |
|---|---|---|
| Overtime | ||
| Overtime: where the ordinary hours of work are not stated in an award or agreement, or not separated from other hours | ||
| No ordinary hours of work stated | ||
| Piece-rates: no ordinary hours of work | ||
| Casual employee: shift loadings (i.e. employees are asked to work their ordinary hours outside of normal business hours) |
Allowances
| Payment type | Salary or wages | Qualifying Earnings (QE) |
|---|---|---|
| Danger allowance | ||
| Expense allowance expected to be fully used | ||
| On-call allowance for doctors | ||
| Retention allowance (i.e. a financial incentive to keep a key employee on the job) | ||
| Unconditional extra payments |
Bonuses
| Payment type | Salary or wages | Qualifying Earnings (QE) |
|---|---|---|
| Bonus relating to overtime only | ||
| Christmas | ||
| Ex gratia but relating to ordinary hours of work | ||
| Performance |
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). Qualifying Earnings2 are used by the ATO to work out the SGC.
Find out more about what happens if you don’t pay super or visit the ATO.
More for employers
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Disclaimers
- Australian Taxation Office, Super guarantee, ATO website, accessed 12 March 2026.
- Australian Taxation Office, Explaining qualifying earnings, ATO website, accessed 20 May 2026.
- An exception to this rule is if you make a delayed payment, on salary.