As an employer, the Super Guarantee (SG) legislation requires you to pay superannuation contributions on behalf of your employees. The SG rate as of 1 July 2025 is 12%.
Ordinary Time Earnings (OTE)
Ordinary Time Earnings is the amount your employee earns in relation to their ordinary hours of work. It includes:
- over-award payments
- bonuses
- commission
- shift allowances
- paid leave
It does not include overtime payments.
How much to pay?
To work out how much you need to pay your employee, calculate the employee’s OTE for the quarter and multiple by the current SG rate.
Maximum superannuation contribution base
Each year, the Federal Government sets a maximum limit on an employee’s income on which you need to pay SG contributions, called the maximum superannuation contribution base.
The limit is indexed to AWOTE and changes every financial year. For 2025-26 the maximum superannuation contribution base is $62,500 per quarter. So if an employee’s earnings exceed $62,500 for the quarter, you do not need to pay SG contributions on their earnings above this limit.
| Income year | Income per quarter |
| 2025-26 | $62,500 |
| 2024-25 | $65,070 |
| 2023-24 | $62,270 |
| 2022-23 | $60,220 |
| 2021-22 | $58,920 |
| 2020-21 | $57,090 |
Note: Employers may be required to contribute above these limits under any industrial awards or workplace agreements in place.
When to make SG payments?
You can make SG payments fortnightly, monthly or quarterly. There are deadlines for quarterly payments.
Note, that late SG payments can affect an employee’s insurance claims and you could also receive penalties from the ATO.
SG rate increases over time
The current rate for the 2025-26 financial year is 12%.
The table below displays the timelines during which the SG rate increased from 10% to 12% over the last 5 years.
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