Is Super Paid on Overtime in Australia? (2026)

No — super is generally not paid on overtime in Australia.

Overtime is excluded from Ordinary Time Earnings (OTE) under the Superannuation Guarantee (Administration) Act 1992, which means your employer's 12% compulsory super obligation does not extend to the extra hours you work beyond your ordinary roster.

But the full answer has important nuances. There are situations where super is payable on overtime, where employers commonly get it wrong in both directions, and where your contract or enterprise agreement may give you a better entitlement than the default. This guide covers all of it.

The Short Answer: What OTE Is and Why It Matters

The Superannuation Guarantee (SG) requires employers to pay 12% of an employee's Ordinary Time Earnings into their super fund each quarter. The key phrase is Ordinary Time Earnings — not total earnings, not gross wages.

The ATO defines OTE in Superannuation Guarantee Ruling SGR 2009/2 as:

The amount an employee earns for their ordinary hours of work.

Ordinary hours of work are the hours specified in an employee's award, enterprise agreement, or employment contract as their standard working arrangement — typically 38 hours per week for a full-time employee.

Overtime is any work performed beyond those ordinary hours. Because overtime is by definition outside ordinary hours, it is outside OTE — and therefore outside the SG calculation.

What Is Included in OTE (Super Is Paid On These)

Earnings type	Included in OTE?	Super payable?
Base salary / ordinary wages	Yes	Yes
Shift loadings for ordinary hours (e.g. regular afternoon shift)	Yes	Yes
Penalty rates for ordinary hours (e.g. regular Saturday roster)	Yes	Yes
Annual leave payments	Yes	Yes
Paid sick leave	Yes	Yes
Long service leave	Yes	Yes
Most allowances (first aid, tool, meal — paid for ordinary hours)	Yes	Yes
Commissions (for work in ordinary hours)	Yes	Yes
Casual loading	Yes	Yes
Bonuses for work performed in ordinary hours	Yes	Yes

What Is NOT Included in OTE (Super Is Not Paid On These)

Earnings type	Included in OTE?	Super payable?
Overtime payments	No	No
Expense reimbursements	No	No
Workers compensation payments	No	No
Lump sum termination payments in lieu of notice	No	No
Discretionary bonuses unrelated to specific ordinary hours work	No	No
Unpaid leave	No	No

Worked Example: What Super You Actually Earn on an Overtime Week

Scenario: You are a full-time employee earning $36.00/hr, working a standard 38-hour week. One week you work 42 hours — 38 ordinary hours and 4 hours of overtime at time and a half (150%).

Component	Hours	Rate	Gross pay
Ordinary time	38	$36.00	$1,368.00
Overtime (time and a half)	4	$54.00	$216.00
Total gross pay	42		$1,584.00

Super calculation:

OTE = $1,368.00 (ordinary hours only)
SG at 12% = $164.16
Super is NOT calculated on the $216.00 overtime component

If super were calculated on total gross pay: $1,584.00 × 12% = $190.08 — a difference of $25.92 for that week.

Over a full year, if you regularly work 4 hours of overtime per week at this rate, the shortfall in super contributions relative to what you would receive if overtime were included is approximately $1,348 per year. Over a 30-year career, compounded at 7% average annual return, that gap becomes roughly $136,000 in retirement savings — a meaningful number for high-overtime workers.

The Exceptions: When Super IS Paid on Overtime

The default rule (no super on overtime) can be overridden in several situations:

1. Your Employment Contract Explicitly Includes Overtime in Super

Some employment contracts — particularly for salaried professionals and executives — include a clause stating that super is calculated on total remuneration or total earnings including overtime. If your contract says this, your employer must honour it. The SG sets a floor, not a ceiling.

What to look for in your contract: Phrases like "superannuation is calculated on total remuneration," "base salary inclusive of overtime," or "super contributions are 12% of total earnings."

2. Your Enterprise Agreement Specifies Super on Overtime

Enterprise agreements (EAs) can set super entitlements above the SG minimum. Some EAs — particularly in mining, resources, and construction — explicitly include overtime or roster-based earnings in the super calculation. Check the super clause in your EA directly on the Fair Work Commission's registered agreements database at fwc.gov.au.

3. Overtime Is Genuinely Part of Your Ordinary Hours Arrangement

This is the most commonly misunderstood situation. If your employer regularly requires you to work hours beyond 38 per week as part of your standard arrangement — and those hours are not treated as overtime but as ordinary hours under your agreement — then super applies to them.

For example: if your enterprise agreement or contract specifies that your ordinary hours are 40 hours per week (not 38), then super is calculated on all 40 hours. The extra 2 hours above 38 are ordinary hours under your agreement, not overtime.

This is particularly relevant for annualised salary arrangements, where a salary is set to cover an expected number of additional hours per week. If the annualised salary is calculated to include those extra hours as ordinary time, super applies to the full amount.

4. The Overtime Is Actually a Penalty Rate for Ordinary Hours

This catches many employers out. Shift loadings and penalty rates for ordinary hours are OTE — they are not overtime just because they pay above the base rate.

Example: a worker on a permanent afternoon shift (ordinary hours) may receive a 15% afternoon shift loading on those ordinary hours. That loading is OTE — super applies to it. It is not overtime simply because it is a higher rate.

Contrast this with a worker called in on a Saturday outside their normal roster — those Saturday hours may be overtime, in which case the 150% Saturday overtime rate is not OTE.

The distinction: is the higher rate being paid for hours within the ordinary arrangement, or for hours beyond it? If within, it's OTE. If beyond, it's not.

The $450 Threshold — No Longer Applies

Before 1 July 2022, employers did not have to pay super if an employee earned less than $450 in a calendar month. This threshold was abolished on 1 July 2022.

From 1 July 2022, super is payable on all OTE from the first dollar earned in a pay period. There is no minimum income threshold. Low-income and part-time workers who were previously excluded because their monthly earnings fell below $450 are now entitled to super from their first dollar of ordinary earnings.

This change does not affect the overtime exclusion — overtime is still not OTE regardless of income level. But it means that even a small amount of ordinary earnings now attracts super.

Common Employer Mistakes (In Both Directions)

Employers make two types of errors on super and overtime:

Underpaying super by treating ordinary hours as overtime: Some employers incorrectly classify hours that should be ordinary hours (and OTE) as overtime to avoid paying super on them. This is an underpayment of the SG. The ATO can conduct audits and impose penalties including interest, penalties, and the Super Guarantee Charge (SGC) — which is more expensive than the SG itself because it is not tax-deductible.

Overpaying super by including overtime in OTE: Some payroll systems incorrectly calculate super on total gross pay including overtime. This is not legally required and costs employers money, but it does benefit employees. If your employer overpays super, you cannot demand they continue to do so (unless your contract specifies it), but you are entitled to keep any super already paid.

How to Check Whether You're Being Paid Super Correctly on Overtime

Step 1: Get your payslip and identify the breakdown between ordinary wages and overtime payments.

Step 2: Identify your OTE for the period — this should be all ordinary wage components (base pay, shift loadings for ordinary hours, leave payments) but not overtime.

Step 3: Multiply your OTE by 12% (the current SG rate). This is the minimum super your employer must pay for that period.

Step 4: Compare to what appears on your payslip or super fund statement as the employer contribution for that period.

If the employer contribution is less than 12% of your OTE (not your total pay), you may have an underpayment. If it is more, the employer is paying super on overtime voluntarily or contractually.

Step 5: Check your super fund account. Employer contributions should appear within 28 days of the end of each quarter (deadlines: 28 October, 28 January, 28 April, 28 July). If no contribution appears within 28 days of a quarter end, contact your employer first, then the ATO if unresolved.

If you believe your employer is underpaying super (whether on ordinary earnings or any other basis), you can report it to the ATO at ato.gov.au/tip-off. The ATO investigates all SG non-compliance reports.

Can You Put Overtime Earnings Into Super Yourself?

Yes — even though your employer doesn't have to pay super on overtime, you can make voluntary super contributions from your overtime earnings if you choose to.

Concessional (before-tax) contributions via salary sacrifice: You can arrange with your employer to salary sacrifice part or all of your overtime pay into super before tax. These contributions are taxed at 15% in the fund — lower than the marginal tax rate of 32.5%, 37%, or 45% that would otherwise apply. Annual concessional cap: $30,000 (2025-26), inclusive of employer SG contributions.

Non-concessional (after-tax) contributions: You can also contribute from post-tax income directly to your super fund. Annual non-concessional cap: $120,000 (2025-26), or up to $360,000 over 3 years using bring-forward rules if your total super balance is below $500,000.

For high-overtime workers — particularly in resources, mining, construction, and healthcare — voluntary super contributions from overtime pay are one of the most tax-effective ways to build retirement savings faster, given that ordinary income tax on overtime can reach 47% (including Medicare Levy) at higher income levels, while contributions tax in super is capped at 15%.

Use the Dolaro Superannuation Calculator to model how additional voluntary contributions from overtime pay would affect your projected super balance at retirement.

Frequently Asked Questions

Is super paid on overtime in Australia?

No — not under the default Superannuation Guarantee rules. Overtime is excluded from Ordinary Time Earnings (OTE) under the Superannuation Guarantee (Administration) Act 1992. Employers must pay 12% super on OTE only. Overtime payments — hours worked beyond the ordinary hours in your award, agreement, or contract — are not OTE and do not attract the compulsory super contribution. Exceptions exist where your employment contract or enterprise agreement explicitly includes overtime in the super calculation.

Is overtime exempt from superannuation?

Yes — overtime is exempt from the Superannuation Guarantee. The ATO's Superannuation Guarantee Ruling SGR 2009/2 confirms that overtime payments are not Ordinary Time Earnings (OTE) and therefore do not form part of the base on which the 12% SG is calculated. Your employer is not required to pay super on overtime hours, regardless of how many overtime hours you work.

Do casual employees get super on overtime?

Casual employees have the same treatment as permanent employees: super is paid on ordinary time earnings (including casual loading, which is OTE) but not on overtime. If a casual works beyond the hours that constitute ordinary hours under their award or arrangement, those extra hours are overtime and are excluded from the SG calculation. The 25% casual loading itself is OTE — super applies to it.

What is OTE and how does it relate to overtime?

OTE stands for Ordinary Time Earnings — the amount an employee earns for their ordinary hours of work. It includes base wages, shift loadings for ordinary hours, penalty rates for ordinary hours, paid leave, and most allowances. It does not include overtime payments. The SG is calculated as 12% of OTE, which is why overtime does not attract compulsory super. The ATO's SGR 2009/2 is the definitive reference.

Can my employer pay super on overtime voluntarily?

Yes. The SG is a minimum — employers can pay more. Some employers pay super on total earnings including overtime, either by choice or because their employment contracts or enterprise agreements require it. If your employer is currently paying super on your overtime, they can only stop doing so if your contract permits it. If your contract specifies super on overtime, they must continue. Always check your contract terms.

What happens if my employer doesn't pay super on my ordinary earnings?

If your employer fails to pay the minimum 12% SG on your OTE (not related to overtime — that is separate), they are liable for the Super Guarantee Charge (SGC). The SGC is more punitive than the SG itself: it includes the unpaid super amount, an interest component of 10% per annum, and an administration fee, and is not tax-deductible for the employer. You can report suspected SG non-compliance to the ATO via ato.gov.au/tip-off. The ATO treats SG non-compliance seriously and investigates all reports.

Does the super guarantee apply to shift workers on weekend penalty rates?

It depends on whether the weekend work is ordinary hours or overtime. If a shift worker is regularly rostered on weekends as part of their ordinary arrangement, the weekend hours are ordinary hours — and the penalty rates paid for those hours are OTE. Super applies. If the weekend work is called in outside the normal roster and constitutes overtime, the penalty rate is an overtime payment and is not OTE. Super does not apply to the overtime component. The distinction is whether the hours are within the agreed ordinary arrangement or beyond it.

How much super am I missing out on by working overtime?

It depends on how much overtime you work. For every $100 in overtime pay, you are not receiving $12 in super that you would receive if the same amount were ordinary earnings. For a worker earning $20,000 per year in overtime at a 34.5% marginal tax rate, the annual super shortfall relative to ordinary earnings is $2,400. Over 30 years at 7% average annual return, that $2,400 annual gap compounds to approximately $227,000 in retirement savings. High-overtime workers who want to offset this gap can make voluntary concessional contributions (salary sacrifice) from overtime pay, which is taxed at 15% in the fund — well below most workers' marginal income tax rate on overtime.

Where does the rule about super and overtime come from?

The rule comes from the Superannuation Guarantee (Administration) Act 1992, which defines what employers must pay super on (Ordinary Time Earnings) and what they don't (overtime and certain other payments). The ATO's Superannuation Guarantee Ruling SGR 2009/2 provides detailed guidance on what is and is not OTE. This ruling is publicly available on the ATO's legal database at ato.gov.au.

This article is general information only and does not constitute financial or legal advice. Superannuation rules can change — always verify current SG rates and OTE definitions with the ATO or a qualified adviser.