From 1 July 2025, your superannuation guarantee (SG) rate is increasing to 12%. That means more money going into your super from your employer, helping you build a better nest egg for retirement.

But what happens if you earn some of your wages before 30 June but get paid after 1 July? Will the higher super rate apply to that pay too? Let’s break it down.

It’s all about when you get paid

The key rule here is that the SG rate is based on when you’re paid, not when you earned the money.

So even if you did the work in June, if your pay day is on or after 1 July 2025, your employer has to pay 12% super on those wages.

If you get paid before 1 July 2025, then the old rate of 11.5% applies – if the work was done in July. It all comes down to the date the money hits your bank account.

A quick example

Let’s say George works for XYZ Pty Ltd.

• If George works in June (or even across June and July), but gets paid in July, his employer must pay 12% super on the whole amount.
• If George works in July, but for some reason gets paid in advance in June, only 11.5% super applies.

Your employer will then need to send that super contribution to your fund by the usual deadlines – generally within 28 days after the end of the quarter.

The final step in a long journey

The increase in the SG rate to 12% is the last step in a plan that’s been rolling out over the past few years. Here’s how the SG rate has been increasing:

This is great news for workers, because more super means more savings for retirement, and that can make a big difference later on.

What counts for super?

Super is generally paid on what’s called your ordinary time earnings (OTE). That’s the amount you’re paid for your regular working hours, plus things like commissions, allowances, and shift loadings.

Super usually isn’t paid on things like overtime, reimbursements, and some other specific payments.

Need help?

If you’re unsure whether your super is being calculated correctly, don’t hesitate to ask for help. Your super is your money for the future, so it’s worth making sure you’re getting everything you’re entitled to.

For employers, if you’re uncertain about how the new super rate applies to your team, or need clarity on which payments count for super, don’t leave it to chance. Getting it right helps you avoid costly mistakes and penalties. We’re here to help both employees and employers understand their super obligations and entitlements, so you can have confidence that everything’s on track.