Employer Contributions to Increase to 10.5% – 1 July 2022

Salaries exclusive of super

• As an employer with employees’ on a base salary structure, you will have to increase their base by 0.5% and pay the increase on top of their current salary from 1st July 2021;
  

• There may be some exceptions to this general position which will be dependent on the exact wording in the instrument and if an offset clause operates to allow for absorption of this amount into the overall remuneration package.

Salaries inclusive of super

• Here is where it may get a little tricky! Employees on a total remuneration package, this 0.5% superannuation increase could mean a decrease in their take-home pay. As such, we are expecting to see most employers will electing this option, and pass on this additional cost by increasing their employees’ super and decreasing their cash component.

• Please feel free to reach out to ensure there are no other provisions in your employment contracts that make this option unavailable.