Take an employee with $100,000 of ordinary time earnings in 2026-27. The Super Guarantee rate is 12 percent from 1 July 2025, so the employer must contribute $100,000 times 0.12, which is $12,000, into the employee's super fund across the year, paid at least quarterly. Because this sits on top of salary rather than inside it, the total cost of employing the person, the package value, is $112,000. Inside super that $12,000 contribution is taxed at the concessional 15 percent rate, so $1,800 of contributions tax is deducted and $10,200 lands in the balance. The employee's take-home pay is unaffected, since none of this comes out of the $100,000 salary.
How it is calculated
The Super Guarantee is the minimum super an employer must pay on top of your wages, set at 12 percent of ordinary time earnings from 1 July 2025. Ordinary time earnings broadly means your regular salary plus most allowances and shift loadings, but generally not overtime. The calculator multiplies your earnings by 12 percent to get the annual contribution and adds it to salary to show the true package value. Two limits exist in practice. There is a maximum contribution base per quarter, above which the employer need not pay SG, and contributions count toward the $30,000 concessional cap. Inside super the contribution is taxed at 15 percent, lower than most marginal rates, which is the core tax advantage of the system.
Frequently asked questions
Maximum contribution base?
For 2025-26 the maximum contribution base is $62,270 per quarter, which is $249,080 per year. Employers are not required to pay SG on the portion of earnings above this limit in any quarter. The ATO indexes the maximum contribution base each financial year.
What is the Super Guarantee rate in 2025-26?
The Super Guarantee rate increased to 12 percent from 1 July 2025 and remains at 12 percent ongoing. This is the minimum percentage of ordinary time earnings your employer must contribute to your super fund on top of your salary.
Does the SG count toward the concessional contributions cap?
Yes, employer SG contributions are concessional contributions and count toward your $30,000 annual concessional cap for 2025-26. If you also make salary sacrifice contributions, both amounts are added together against the same cap. Exceeding the cap means the excess is included in your assessable income and taxed at your marginal rate.
When must employers pay SG contributions?
Employers must pay SG contributions at least quarterly, with each payment due 28 days after the end of each quarter. The four quarterly due dates are 28 October, 28 January, 28 April, and 28 July. Late or unpaid SG attracts the Super Guarantee Charge, which includes the unpaid amount, interest, and an administration fee payable to the ATO.