Compulsory super guarantee changing | Daily Mail Online
Why many Aussie workers are taking a pay cut on July 1 – as an irate worker unleashes on the boss after receiving a shocking email: ‘Is this even legal?’
- Aussie worker receives more super but less take-home pay
- Super guarantee increases to 11 percent on July 1
An Australian worker is shocked after learning his company will cut his take-home pay if the mandatory super-guarantee rate rises
The super-guarantee rate rises from 10.5 percent to 11 percent on July 1 this year, meaning employees are putting more money aside for retirement.
But in some cases, bosses may withhold your pay to cover the super raise.
If you’ve negotiated a salary that includes the company’s super contributions in the total amount, there’s a chance that your company will reduce your take-home pay to fund this super raise.
An Aussie worker recently received an email from their employer stating that to compensate for the pension increase, the amount that would go into their pocket on payday would be reduced.
“Is this legal?” they wrote alongside a photo of the email to Reddit.
An Australian worker is shocked after learning his company is cutting his take-home pay because his pension is rising
The email stated that the changes would be reflected in the employee’s July pay slip.
Please note that this increase will affect your net salary.
“For total fixed compensation (TFR) employees, the increase in base salary and net pay decreases.
“An employee with an annual TFR of $100,000 (including super) who currently receives $90,497.74 base salary plus $9,502.26 (10.5 percent) super will instead receive $90,090.09 base salary plus $9,909.91 ( 11 percent) superb.’
The employee was informed by other Reddit users that if they signed a contract stating they would be on TFR, the changes to their take-home pay were completely legal.
But many pointed out that some employers would raise the salary as a whole to make up for the changes in super.
“Legal and very nasty,” said one person.
“Luckily my employer isn’t a sucker and will settle the difference,” said another.
An Aussie worker recently received an email from his employer stating that to compensate for the pension increase, the amount that would go into his pocket on payday would be reduced (stock image)
“Like I said, if your employment contract says your salary ‘includes’ mandatory allowances, then you’re pretty screwed,” one of them remarked.
‘Otherwise you can push back, accept it or find a workplace that wouldn’t do this – and I’m sure there would be plenty of workplaces. Because this is a base act on the employer’s part.’
Others pointed out that the employer had every right to make the changes, and suggested that the employee look for another job at a company where super is added to their salary.
Many also clarified that the employee’s total pay didn’t change, only that the employee would have more super saved when they retire.
“Honestly, the amount you earn doesn’t really decrease. I still think it’s stupid to do this, but from a business point of view it still costs the company the same amount. Payday super will be a good thing,” someone said.
The super warranty will be increased by 0.5 percent over the next two years to 12 percent on July 1, 2025.