Does minimum wage include super? Your essential guide to wages, superannuation and employer obligations

Quick answer: Does minimum wage include super?  

No — the national minimum wage does not include superannuation. Employers must pay the National Minimum Wage (NMW) as the employee’s base rate, and then add the Superannuation Guarantee (SG) on top.

Current rates (from 1 July 2025):

• National minimum wage: $24.95 per hour or $948.00 per week
• Superannuation Guarantee (SG): 12% of ordinary time earnings (OTE)
• SG payment timing: Super must be paid on payday from 1 July 2026.
  

You can’t roll super into the minimum wage or count it toward meeting minimum pay requirements — the Fair Work Act and the national workplace relations system treat them as separate entitlements.

Clear definitions (so everyone’s on the same page)  

A few terms often get mixed up. Here’s the simple version.

National Minimum Wage (NMW)

The minimum amount that most adult employees must be paid for ordinary hours. Set yearly by the Fair Work Commission. Applies when an award or enterprise agreement does not cover a worker. Current rate: $24.95 per hour.

Award minimums

Many employees are covered by an award (or a registered enterprise agreement). These set industry‑specific minimum rates, loadings, allowances and penalty rates. These minimums can be higher than the NMW.

Superannuation Guarantee (SG)

The compulsory employer super contribution rate set by the ATO. From 1 July 2025, the SG rate is 12% of an employee’s ordinary time earnings (OTE).

Ordinary time earnings (OTE)

The earnings an employee receives for their ordinary hours of work. SG is calculated only on OTE.

Minimum wage vs super: why the difference matters

Superannuation is designed to build a worker’s retirement savings. The minimum wage is designed to ensure a fair base rate of pay for the work they perform today.

The law separates them so that:

• Employees get the full, correct base hourly rate.
• Employers cannot offset wage obligations by folding super into wages.
• Superannuation remains consistently calculated on OTE, not on negotiated pay rates.

This separation is why the minimum wage always excludes super.

A simple example: “plus super” vs “inclusive of super”  

Let’s break it down with easy numbers.

Scenario A — Employee earns $25 per hour “plus super”

• Base rate (meets minimum wage): $25.00
• SG at 12%: $3.00
• Total cost to employer: $28.00 per hour
• Employee’s wage: $25.00 (super goes to their fund).

Scenario B — Employer incorrectly states $25 “including super”

If $25 includes super, the base rate becomes:

• $25 ÷ 1.12 = $22.32 per hour (under the national minimum wage)
• This is non-compliant and may result in underpayment breaches.

What’s not included in the minimum wage 

The minimum wage covers only the base rate. It does not include:

• Superannuation
• Overtime
• Penalty rates
• Allowances
• Loadings (e.g. casual loading)
• Bonuses or commissions
• Leave entitlements (annual leave, paid parental leave, etc.)

These may apply depending on the award or enterprise agreement obligations.

Superannuation in more detail

SG rate: 12% from 1 July 2025

The SG rate increases to 12% as part of legislated annual rises.

SG to be paid on payday from 1 July 2026

This is a significant compliance shift: from July 2026, employers must pay super every pay cycle, at the same time as wage payments.

Do I pay super on overtime?

Generally, no. Overtime is outside ordinary hours, so it is not OTE.

Minimum wage updates and what they mean for employers

The Fair Work Commission reviews minimum wages annually. As of 1 July 2025, the national minimum wage is:

• $24.95 per hour
• $948.00 per week.

If an employee is covered by a modern award, the rate you must pay is the award minimum, not the national minimum — and award minimums vary across different industries and occupations.

How wage and super changes affect employers

1. Financial obligations increase

Higher minimum wages and SG rates mean your payroll costs go up. These increases must be reflected in employment contracts, payroll systems and roster planning.

2. Compliance requirements tighten 

You must:

• Use the correct minimum pay rates (award or national)
• Apply the correct casual loading if relevant
• Calculate SG based on ordinary time earnings
• Pay super on payday from July 2026
• Keep accurate timesheets, wage payments and superannuation records.

3. Employees rely on you getting it right 

Clear, accurate pay and super help build trust, reduce disputes and support employee rights across the national workplace relations system.

Base rate vs total remuneration packages—This is where many underpayments start!

“Base rate + super” (compliant) 

You pay employees:

• A base rate at or above the correct minimum
• SG on top.

“Total remuneration inclusive of super” (watch closely)  

This is only compliant if:

• The base rate alone still meets or exceeds the minimum wage
• All award entitlements (penalty rates, allowances, loadings) are separately met
• SG is still calculated correctly on OTE.

If the “inclusive” base rate drops below minimum wage or an award minimum, it’s non‑compliant.

How this looks in pay‑package examples

Example 1 — Annual salary “plus super”

Employment contract: $100,000 + super.

• SG at 12% = $12,000
• Total package: $112,000.

Example 2 — Salary “including super”

Employment contract: $100,000, inclusive of superannuation.

• Base salary = $100,000 ÷ 1.12 = $89,285.71
• You must check that $89,285.71 still satisfies the relevant minimum wage or award minimum for the role.

FAQs 

Is minimum wage inclusive or exclusive of super?

Exclusive. Minimum wage is the base rate only.

Do I pay super on overtime? 

Generally, no. Overtime is not part of ordinary hours and is not counted as OTE.

Do casual employees get super?

Yes. Casual employees covered by the national employment standards who meet SG eligibility receive super on their ordinary hours, plus their casual loading.

How do I check my employee’s minimum rate?

Use the Fair Work Ombudsman Pay Calculator (search “Fair Work Ombudsman pay rates”). It reflects the award or national minimum wage requirements and calculates the correct rate for:

• Full‑time and part‑time employees
• Casual workers
• Junior employees
• Apprentices and trainees
• Different industries and occupations.

Do supported wage system employees get super?

Yes — SG applies to employees with a formal training contract or working under a supported wage system according to their OTE.

Do I need to update employment contracts?

Yes. Any contract that lists the following should be reviewed to ensure they meet current minimum wage and SG requirements:

• Base rate
• Salary “inclusive of super”
• Total remuneration package.

What employers should do now (practical checklist)

1. Update payroll systems: Ensure SG = 12% from 1 July 2025, and super is set to pay each pay period from July 2026.
   
2. Review all employment contracts: Check whether wages listed as “inclusive of super” meet the correct base rate.
   
3. Confirm minimum pay rates: Use Fair Work Ombudsman resources to check award or national minimum wage obligations.
   
4. Communicate clearly with employees: Tell employees what their new wage and SG rates are and when their payday super begins.
   
5. Audit payroll regularly: Review wage payments, ordinary hours, allowances, penalty rates and super contributions to avoid underpayment issues.

Wrapping up: stay compliant, stay confident

Keeping pace with Fair Work and Superannuation Guarantee changes isn’t just a box-ticking exercise — it’s how you protect your business and your people. The national minimum wage and superannuation are separate for a reason: one safeguards fair pay today, the other secures retirement tomorrow.

By understanding that distinction and keeping payroll systems up to date, you’ll avoid compliance headaches and ensure every employee is paid correctly.

So, before the next pay run:

• Double-check your base rates against the current Fair Work minimums
• Confirm super is 12% of ordinary time earnings
• Make sure you’re set to pay super on payday from July 2026.

Staying compliant now means fewer corrections later, and more trust from your team.

For organisations managing multiple awards, rosters, and pay cycles, OneAdvanced’s time and attendance tools can help automate compliance checks and streamline payroll accuracy—so you can focus on your people, not the paperwork.