Is super paid on overtime? Under Payday Super, from 1 July 2026, the super guarantee (12% in 2026–27) is worked out on your qualifying earnings. Here's what counts, what doesn't, and a calculator for one pay.
Super is not paid on overtime when your ordinary hours are clearly identified, but it is paid on penalty rates, casual loading, leave loading and most bonuses and commissions. Example: $1,500.00 ordinary pay plus $300.00 overtime gives $194.40 super, not $230.40.
Super on one pay
Super guarantee at 12% of qualifying earnings for pays from 1 July 2026. Your employer may pay more under an agreement or your contract.
What counts for super
| Payment | Super guarantee applies? |
|---|---|
| Ordinary hours pay (including casual loading) | Yes |
| Penalty rates and shift loadings for ordinary hours | Yes |
| Overtime | No |
| Annual leave loading | Yes |
| Bonuses and commissions for ordinary hours | Yes |
| Task allowances (industry, higher duties) | Yes |
| Expense allowances you expect to spend in full | No |
| Unused leave paid out on termination | No |
| Paid annual leave and sick leave | Yes |
| Payment in lieu of notice | Yes |
| Employer or government paid parental leave | No |
Summary of the ATO's list of qualifying earnings. Conditions apply to some items; see the ATO page.
How it works
- Qualifying earnings replaced ordinary time earnings as the base for the super guarantee for earnings paid from 1 July 2026, when employers must pay super with each pay.
- All ordinary time earnings are qualifying earnings, plus some extras such as all commissions.
- Salary sacrificed to super counts if it would otherwise have been qualifying earnings; amounts sacrificed to other benefits such as a novated lease don't.
Common questions
Is super paid on overtime?
Usually not. Under Payday Super, from 1 July 2026, overtime isn't part of qualifying earnings when your ordinary hours are clearly set by an award or agreement, so the 12% super guarantee doesn't apply to it. If ordinary hours can't be identified, all hours count.
Is super paid on penalty rates and casual loading?
Yes. Shift penalties (including public holiday penalties) and casual loading paid for ordinary hours are qualifying earnings.
Is super paid on leave loading?
Yes, unless the loading is clearly to make up for lost overtime.
Is super paid on a bonus or commission?
Yes for commissions, and for performance, Christmas, sign-on and referral bonuses relating to ordinary hours. Not for a bonus paid only for work done entirely outside ordinary hours.
Is super paid on unused annual leave when I leave?
No. Unused leave paid out on termination isn't qualifying earnings, but a payment in lieu of notice is.
What was ordinary time earnings (OTE)?
OTE was the base for super before 1 July 2026. Qualifying earnings include all OTE plus some extra items such as all commissions, so the overtime rule is the same.
See also the overtime calculator, super calculator and salary sacrifice calculator.
Sources: ATO, What payments are qualifying earnings and List of payments that are ordinary time earnings; super guarantee rate: ATO super rates. Checked 2026-10-22. General information only.