Superannuation guarantee calculator
What an employer must contribute to your retirement fund, and what a package figure means as salary.
Employer super for the year
Estimate$13,200
12.0% of 110,000 of ordinary time earnings
- Salary excluding super
- $110,000
- Lands in the fund after 15% tax
- $11,220
- After 25 years
- $615,580
| Ordinary time earnings | $110,000 |
|---|---|
| Guarantee rate | 12% |
| Employer contribution | $13,200 |
| Contributions tax | -$1,980.00 |
| Into your balance | $11,220 |
A 12% employer contribution on $110,000 is $13,200 — the same figure quoted as a package is worth less as salary.
How this is calculated
How this is calculated
A percentage of earnings
Compulsory employer contributions are a percentage of eligible earnings — 12% in Australia — paid on top of salary rather than out of it, unless the offer was quoted as a total package.
contribution = ordinary time earnings × ratePackage quotes hide the split
A figure quoted as a package already contains the contribution, so the salary is the package divided by one plus the rate. On $110,000 that is a $98,214 salary rather than $110,000.
Contributions are taxed going in
Most systems tax employer contributions inside the fund — 15% in Australia — so $13,200 contributed lands as $11,220. The tax is still far below a working-age marginal rate.
Worked example: A $110,000 salary with a 12% contribution
| Salary | $110,000 |
|---|---|
| Rate | 12% |
| Contribution | $13,200 |
|---|---|
| After fund tax | Varies by country |
The rate, the earnings base and the tax inside the fund all differ by country. Pick a country above for the figures that bind your employer.
What this assumes
- The full salary counts as eligible earnings.
- Contributions are paid on schedule.
- No salary sacrifice arrangement is in place.
- The projection uses a constant net return.
Where this commonly goes wrong
- Eligible earnings usually exclude overtime but include allowances and bonuses, which is where underpayments hide.
- A package quote and a plus-contribution quote for the same headline number are materially different offers.
- Late or missed contributions often attract a statutory charge on top of the shortfall.
Questions
What is a compulsory employer contribution?
A statutory percentage of eligible earnings that an employer must pay into a retirement fund on your behalf, separate from salary. In Australia the rate is 12% of ordinary time earnings.
Does it come out of my salary?
Not if the offer was quoted as salary plus contributions. If it was quoted as a total package, the contribution is carved out of the headline figure, so the salary is lower than it first appears.
Is the contribution taxed?
Usually yes, at a concessional rate inside the fund rather than at your marginal rate. Australia charges 15%, so a $13,200 contribution lands as $11,220 — still far better than salary taxed at 39%.
Related tools
Sources
General estimate based on published ATO rates for the the current period. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
T1