How do I calculate
Ordinary Times Earnings
on wages?

Ordinary Times Earnings for the Superannuation Guarantee Contributions

The Ordinary Times Earnings need to be calculated for each of your employees, so you can correctly calculate their compulsory superannuation guarantee contributions.

Generally speaking Ordinary Times Earnings is made up of the money earnt by your employees from their normal working hours. This includes:

  • Their hourly rate
  • Any allowances they receive – including travel allowances and uniform allowances
  • Any bonuses or commissions you pay to them

For a lot of businesses these amounts will be determined by the award they are employed under.

If an employee’s normal working hours are not specified by an award you would be safe to assume that any hours they regularly work are a part of their ordinary hours.

When an employee works overtime and receives money for this, these hours are not included in their ordinary time earnings.

If you are not able to specifically show that an employee worked and are being paid overtime hours – you will need to include these in the ordinary times earnings calculations.

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Here is a general guide for you to use:

Employees being paid under an award or agreement:

Type of payment Is this Salary or Wages? Include in the Ordinary Times Earnings calculation?
Overtime hours – when the award or agreement defines what the employee’s ordinary hours are, and they work overtime Yes No
Overtime hours – when the award or agreement does not define what an employee’s ordinary hours are, and they work overtime Yes Yes
Overtime hours – where an award specifically says there is no difference between ordinary hours worked and other hours worked Yes Yes
Overtime hours – earnings on the hourly driving rate method under an award Yes No
Casual Employees – shift loading Yes Yes
Casual Employees – overtime payments Yes No
Piece rates – when no ordinary hours are defined Yes Yes

Allowances

Type of payment Is this Salary or Wages? Include in the Ordinary Times Earnings calculation?
Undefined extra payments Yes Yes
Expense allowances to cover amounts employees have paid (motor vehicle allowances etc.) No No
Danger allowance Yes Yes
Retention allowance Yes Yes
On-call allowance Yes Yes

Expenses

Type of payment Is this Salary or Wages? Include in the Ordinary Times Earnings calculation?
Reimbursements No No
Petty Cash No No
Unfair Dismissal No No
Workers compensation – where the employee is going to come back to work Yes Yes
Workers compensation – where the employee is not able to come back to work No No

Leave

Type of payment Is this Salary or Wages? Include in the Ordinary Times Earnings calculation?
Annual leave Yes Yes
Jury Duty No No
Maternity leave No No
Paternity leave No No
Adoption leave No No
Defence reserve service No No

Termination Payments

Type of payment Is this Salary or Wages? Include in the Ordinary Times Earnings calculation?
Termination payment – in lieu of notice Yes Yes
Unused annual leave Yes No

Bonuses

Type of payment Is this Salary or Wages? Include in the Ordinary Times Earnings calculation?
Performance bonus Yes Yes
Christmas bonus Yes Yes
Overtime bonus Yes No
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