Contract clause
Superannuation clause in an Australian employment contract
A superannuation clause states the contributions an employer makes to an employee's retirement fund, the earnings they are calculated on, which fund receives them and when. In Australia it restates or improves the superannuation guarantee, which is a legal minimum the contract cannot reduce, and it may also record a salary sacrifice arrangement.
Superannuation clauses written before 1 July 2026 often promise quarterly contributions, a timing that no longer meets the law. A clause that refers to the guarantee rate and the payday deadline, rather than to fixed dates, stays correct when the rules move again.
Indunil Asanka · Co-founder
4 min read · Published
Sample clause
an employment contract between Blue Wren Veterinary Clinics, a fictional group of animal hospitals in Adelaide, and a practice manager joining in September 2026
7. Superannuation 7.1 Blue Wren Veterinary Clinics will make superannuation contributions for the Employee in addition to the Base Salary, at the superannuation guarantee rate applying from time to time, calculated on the Employee's Qualifying Earnings. At the date of this agreement the rate is 12 percent. 7.2 Contributions are paid for each pay day, so that they are received by the Employee's fund within the time required by superannuation guarantee law. 7.3 Contributions are paid to the complying fund the Employee nominates on a standard choice form. If the Employee does not nominate a fund, contributions are paid to the Employee's stapled fund or, where the Australian Taxation Office advises there is none, to the Employer's default fund. 7.4 The Employee may ask to salary sacrifice part of the Base Salary into superannuation. Any arrangement must be agreed in writing before the earnings are paid and applies only to future earnings. 7.5 Each pay slip shows the contribution amount and the fund it was paid to.
Sample wording, not legal advice.
Variants
Rate stated with an automatic update
Employers who want the current percentage visible in the contract without it going out of date.
The Employer will contribute 12 percent of the Employee's Qualifying Earnings to the Employee's nominated complying fund for each pay day. If the superannuation guarantee rate increases, the Employer will contribute at the increased rate from the date it takes effect, and the Base Salary will not be reduced as a result of the increase.
Contribution above the guarantee
Employers that use a higher contribution as part of the offer, often in health, education or professional firms.
The Employer will contribute 14 percent of the Employee's Qualifying Earnings to the Employee's nominated complying fund, being the superannuation guarantee rate plus an additional employer contribution of 2 percent. The additional contribution is a contractual benefit, is paid at the same time as the guarantee contribution, and may be changed only by written agreement between the parties.
Total package including superannuation
Senior roles quoted as one figure where the employee accepts that superannuation comes out of it.
The Employee's Total Remuneration Package includes the superannuation contributions the Employer must make under superannuation guarantee law. The Employer will contribute at the guarantee rate on the Employee's Qualifying Earnings for each pay day, and the balance of the package is paid as Base Salary. The Employer may not treat any salary sacrifice contribution as reducing the guarantee contribution it must make.
What to negotiate
On top of salary or inside a package
A package that includes superannuation lowers the take home salary for the same headline number, and every future rate rise comes out of the employee's pay unless the clause says otherwise. Candidates should ask for salary plus super, or for a promise that a rate increase will not reduce the base.
Extra contributions as a benefit
Some employers offer contributions above the guarantee instead of a higher salary. That can suit an employee building retirement savings, but the extra percentage is only as secure as the clause. It should be stated as a contractual entitlement that changes only by agreement, not as a policy the employer can withdraw.
The risk of leaving it out
Without a superannuation clause the employer still owes the guarantee, so the employee's minimum is protected by law. What is missing is any agreed treatment of packages, extra contributions or salary sacrifice, and an employer relying on an old quarterly habit risks paying late under Payday Super and becoming liable for the superannuation guarantee charge.
The rate and the timing in 2026
The general superannuation guarantee rate is 12 percent, and the Australian Taxation Office lists it unchanged for the year from 1 July 2026 to 30 June 2027. From 1 July 2026 Payday Super applies: a contribution is on time only if the employee's fund receives it, with the information needed to allocate it, within 7 business days after the day qualifying earnings are paid. The first contribution for a new employee or to a new fund has 20 business days. A late contribution makes the employer liable for the superannuation guarantee charge.
Qualifying earnings and choice of fund
Qualifying earnings replaced ordinary time earnings as the base from 1 July 2026. They include ordinary time earnings, such as pay for ordinary hours and many bonuses, and all commissions paid to employees. Independent contractors paid mainly for their labour count as employees for superannuation guarantee purposes. An employee can choose a fund on a standard choice form, and the employer has 2 months to start paying into it. An employee who does not choose is paid into their stapled fund if they started on or after 1 November 2021.
Where it sits in a generated document
A generated employment contract numbers superannuation as its own clause straight after remuneration, so that pay slips and later variations can point to it. The draft does not cite the Australian Taxation Office or any other source, which is why the rate, the payday deadline and the fund rules are confirmed against the regulator before the document is signed.
Documents that carry this clause
Employment contractA full time ongoing contract for an operations coordinator on $86,000 plus $10,320 of superannuation. Eleven numbered clauses, a leave table drawn from the National Employment Standards, and a notice table that scales with service.
PayslipOne fortnight for a cafe supervisor paid by the hour, with weekend rates, a union deduction and a salary sacrifice. Half of a payslip is legally required; the other half is what stops the questions.
Casual employment agreementA retail assistant is paid $34.00 an hour, which is a base of $27.20 plus a twenty five per cent loading. The agreement shows how every other rate is built from that base, and what the loading is paid instead of.
Job offer letterAn offer of $98,000 plus $11,760 of superannuation, with the three checks it depends on and a clear instruction not to resign until they clear. The letter also names what is not in the offer, which is the part candidates most often assume.Questions people ask
What is the superannuation guarantee rate for 2026 to 27?
The general rate is 12 percent of qualifying earnings for the year from 1 July 2026 to 30 June 2027, the same as the previous year. The Australian Taxation Office publishes the rate table, and a clause that refers to the rate applying from time to time avoids having to amend the contract if it changes.
When must superannuation be paid under Payday Super?
For earnings paid from 1 July 2026, the contribution must be received by the employee's fund within 7 business days after pay day, with the details the fund needs to allocate it. There is a longer period of 20 business days for the first contribution to a new employee's fund or to a newly chosen fund.
Is superannuation paid on commissions and bonuses?
All commissions paid to employees are qualifying earnings from 1 July 2026, including commissions for work done entirely outside ordinary hours. Many bonuses are ordinary time earnings and are therefore also qualifying earnings. A payment made only for overtime can be treated differently, so the ATO lists are checked for unusual payments.
Can a contract set superannuation below the guarantee?
No. The superannuation guarantee is a statutory minimum. A clause offering less does not reduce what the employer must contribute, and an employer that pays less, or pays late, becomes liable for the superannuation guarantee charge. A contract can only match the guarantee or add to it.
Do contractors get superannuation?
Some do. An independent contractor who is paid mainly for their labour is treated as an employee for superannuation guarantee purposes, even though they are not an employee for other purposes. A contractor agreement for that kind of engagement should therefore deal with superannuation expressly rather than assuming none is payable.
What is a stapled super fund?
A stapled fund is an existing superannuation account linked to an employee, which follows them from job to job. If an employee who started on or after 1 November 2021 does not choose a fund, the employer requests the stapled fund details from the Australian Taxation Office and pays contributions there.
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