Superannuation Guarantee contributions rate and rules

As employees, most of us see our employer’s Superannuation Guarantee (SG) contributions in our super account and rarely give it much thought.

To help you understand these contributions a little better, read SuperGuide’s simple explanation of the SG and what it means for your retirement savings.

What is the Superannuation Guarantee?

The most common type of contribution regularly going into your super account is likely to be the Superannuation Guarantee – or SG for short – which is the contribution your employer (whether large or small) is required to make into a super fund on your behalf.

The SG is part of the remuneration you receive from your employer. The amount is a percentage of your gross salary or wages. The percentage is set by the Australian Government and changes over time.

What is the current Superannuation Guarantee rate?

The percentage rate for Superannuation Guarantee contribution payments by your employer is 11.5% in 2024–25 and will rise to 12% on 1 July 2025, where it is scheduled to stay.

Superannuation Guarantee rate (2002 to 2026 and beyond)

If your employer doesn’t pay the required rate of SG into your super account by the quarterly due date, they may have to pay a Superannuation Guarantee Charge (SGC) to the ATO. The SGC includes all the SG amounts owing to their employees, plus interest and an administration fee.

Employers who don’t pay the SG into the correct super fund by the due date must report and rectify the missed payment by lodging an SG Statement and paying the SGC.

Am I eligible for SG contributions?

Your employer is required to make quarterly SG contributions to your super fund if you are an eligible employee, regardless of how much you are paid. The SG contribution amount is calculated using your ordinary time earnings (see section below).

You are eligible for SG payments whether you are a full-time, part-time or casual employee.

Employees aged under 18, or those classified as a private or domestic worker (like a nanny), must work for their employer more than 30 hours per week to qualify for SG payments.

Employees who are a company director, a family member working in a business, or employees who are receiving super pension, annuity or transition-to-retirement payments are also eligible for SG payments.

If you are self-employed as a sole trader or in a partnership, you are not required to pay SG for yourself.

Temporary residents are also entitled to receive SG payments into their super account.

Your employer is not required to make SG contributions if you are a non-Australian resident and are paid to do work outside Australia, are an Australian resident but paid by a non-resident employer for work done outside the country, a senior foreign executive on certain visas, or temporarily working in Australia for an overseas employer and are covered by super provisions in a bilateral social security agreement.

If you want to check whether you are entitled to SG contributions from your employer, you can use the ATO’s Am I entitled to super? online tool. It asks questions about your working arrangement to help you determine whether you are entitled to super from your employer.

How is my SG contribution calculated?