There will be increases of 0.5 per cent each year until the SG percentage reaches 12 per cent from 1 July 2025, as follows.



The superannuation guarantee (SG) from employers for eligible employees is to rise from 9.5 per cent to 10 per cent from 1 July 2021.

• 1 July 2021 – 30 June 2022: 10 per cent
• 1 July 2022 – 30 June 2023: 10.5 per cent
• 1 July 2023 – 30 June 2024: 11 per cent
• 1 July 2024 – 30 June 2025: 11.5 per cent
•  From 1 July 2025: 12 per cent

For employees

The mandated SG percentage increase (the last was in 2014) does not necessarily mean employees will get a windfall in overall pay from 1 July, as it is dependent on the terms of their employment contract and relevant awards. 

It may be that there is a reduction in an employee’s take-home pay come 1 July to “compensate” for the 0.5 per cent increase in super, where included in the salary package. 

For employers

SG contributions are calculated and paid quarterly by employers based on the SG percentage times ordinary time earnings (OTE). 

OTE is the amount an employer pays employees for their ordinary hours of work pre-tax, including things like commissions and shift loadings, but does not include overtime payments. 

For example, if an employee’s OTE is $100,000 for the 2021–22 tax year, the employer is required to pay $10,000 into their super fund (10 per cent of $100,000).

Tools to assist employers

The Australian Taxation Office (ATO) has an online tool to help employers determine whether workers are eligible for SG contributions.

It also has an OTE Checklist that shows which employee cost is ordinary time earnings and which is not. Employers can determine employee SG contributions using the SG Contributions Calculator.

MYOB Account Right Payroll Software Users

You will need to make sure Super Guarantee is set to 10% and you are using the latest version of MYOB. Follow this link for further guidance.

MYOB Essentials Payroll Software Users

You'll need to check the super guarantee rate for each of your employees to make sure it's set to 10%.

Xero Payroll Software Users

Xero has already updated super to calculate at a rate of 10% for any pay runs after 1 July 2021. You may just want to check this in your first pay run.

If you use any other software provider or clearing house, please contact your provider for more information.