Your questions answered: Do employees get superannuation on overtime paid at the normal rate?

By Portner Press on August 30th, 2019
  1. Industrial Instruments
  2. Fair Work Act

Could you please advise if award and agreement-free employees get super on overtime that isn’t paid at a higher rate?
Super should be paid on ordinary time earnings, which is generally referable to ordinary hours worked (i.e. not overtime). However, if there is no ordinary hours of work stipulated, then all hours worked will be ordinary hours.

For example, if the award/agreement free employee is on a contract that provides their ordinary hours are 38 hours per week, and they happen to work 41, then super is only payable on the 38 hours.

On the other hand, if an award/agreement free employee has a contract which does not stipulate ordinary hours, and there is no readily discernible pattern of customary, regular, normal or usual hours, then all of the hours worked in a week will be ordinary hours of work and all wages are ordinary time earnings attracting super.

You can ask us any employment law questions you may have

As often as you like.

When you subscribe to the Employment Law Practical Handbook.

Related Articles: