Updated on 2 April 2024
5 minute read
Wondering if you’re going to be paid super while on holiday? Super is paid on your ordinary time earnings (OTE) and some types of leave are included in it. Let’s find out which ones.
Yes. Annual leave is part of your ordinary hours.
But super isn't paid when unused annual leave is part of a lump sum payment when your employment ends.
Employers must pay at least 11% of your ordinary time earnings (OTE) into your super fund. This is known as the superannuation guarantee (SG), which is increasing to 11.5% on 1 July 2024 and 12% on 1 July 2025.
OTE is the money you earn during normal work hours. It includes salary, allowances, loadings, bonuses, and some leave.
But not all leave types are treated the same.
Regular pay
Paid leave
Shift loadings
Allowances
Commissions/bonuses
Yes. Cashing out annual leave means you get a payment instead of taking time off work. This is part of your ordinary hours.
But super isn't paid when unused annual leave is part of a lump sum payment when your employment ends.
No. Super isn't paid if unused annual leave or unused long service leave is part of a lump sum payment when your employment ends.
Yes. Annual leave loading is part of your ordinary hours. It’s an extra payment that your employer may pay you on top of your base rate during annual leave.
But super isn't paid if the leave loading is to make up for you being unable to work overtime while on leave.
Yes. Long service leave is part of your ordinary hours. But if you choose to cash out your unused long service leave as a lump sum payment when your employment ends, you won't get super paid on that amount.
Long service leave is an employment benefit for those who have worked with the same employer for a long period. This applies to most full-time, part-time and casual workers.
Yes. An RDO is a day off that you earn by working extra time every day and is part of ordinary hours.
But you won’t get paid super if the RDO is given for working overtime.
No. When you take unpaid leave, your employer doesn't pay you a salary or any super.
Generally, your insurance cover will continue while you’re on leave if there's enough money in your super account to pay for it.
You can tell us to keep your cover even if you’re not getting regular contributions.
Yes. Half-pay leave is part of your ordinary hours, if your employer allows you to take it.
No. Super is generally not paid on parental leave including maternity, paternity and adoption leave. But you can always make voluntary super contributions while on parental leave.
Some employers choose to make super contributions to employees on parental leave. Check your contract for details.
The government has announced plans to pay superannuation to those on paid parental leave. If the law is passed, parents with babies born from 1 July 2025 will be paid 12% super on the government-funded parental leave pay if eligible.
Yes. Purchased leave is a voluntary arrangement between you and your employer where you may 'buy' extra leave by reducing your annual salary. This is part of your ordinary hours.
The super contribution would be based on your reduced salary. For example, if purchasing 4 weeks of extra leave means that your total salary is reduced from $100,000 to around $92,300, super would be paid on a maximum of $92,300.
Yes. Personal leave including sick and carers leave is considered part of your ordinary hours.
Yes, but only if the paid volunteer leave is within your agreed hours. It would then be part of your ordinary hours.
No. Super is generally not paid for these types of leave.
Learn more about what you're entitled to under the National Employment Standards (NES) for all employees in Australia.
Your super doesn't need to take a break just because you do. Adding extra to your super now can make a world of difference to your retirement later.
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Source: ATO list of payments that are ordinary time earnings.
