Superannuation (Super) provides many Australian retirees with financial security later in life. Under government legislation, most working Australians have a percentage of their wages paid into the super fund of their choice (or the nominated fund of their employer) throughout their career. For many, super is the largest investment they will ever make.
As of 1 July 2025, the Superannuation Guarantee has increased again. This is part of an ongoing effort to strengthen retirement balances and reduce reliance on the age pension.
What has changed?
Up until 30 June 2025, under the Superannuation Guarantee, employers are required to pay all eligible workers a 11.5% superannuation contribution in addition to their take-home pay.
From 1 July 2025, all eligible workers must now receive a 12% super payment. This increase aims to help employees accumulate more savings for retirement. How can I check how these changes are affecting me?
The simplest first step is to check your first payslip after the change takes effect.
✅ If your take-home pay has stayed the same and you see a 12% super contribution paid into your nominated superannuation account, good news – your employer has increased your total remuneration without reducing your base wage. Your overall compensation has effectively grown, as your superannuation contributions have increased while your base pay remains unchanged.
❌ If you notice your take-home pay has decreased, it likely means you are on a fixed-remuneration employment agreement, and the extra 0.5% super has been deducted from your base salary. In other words, your employer has reduced your take-home pay to comply with the new superannuation rate.
What should I do if my take-home pay has been reduced?
First, review your employment contract carefully. Look for whether it specifies:
- A total remuneration package (where super is included in a single figure), or
- A base salary plus superannuation (where super is in addition to your base pay).
If your contract specifies a base salary plus super, it’s possible an error has been made and you can raise this with your employer.
If your contract specifies a total remuneration agreement, your employer is legally permitted to adjust your base salary to account for the legislated 0.5% increase in super.
Steps you can take
- Ask your employer whether they would consider increasing your base salary so that your take-home pay returns to its previous level.
- Ask whether they would consider rewriting your contract to specify base salary plus super. This can help protect your take-home pay from future superannuation increases.
It can feel uncomfortable to have conversations like this with your employer. However, they are responsible for clearly explaining how the Superannuation Guarantee affects your pay. If they are dismissive or reluctant to engage, remember that many other employers value transparent discussions and fair agreements.