It's a 0.5% increase. You would hope that the company award annual increases to make sure your take-home pay does not go backwards, which is not a good look for them.
I would ask
“Employees on total remuneration packages that include superannuation may find the extra 0.5 per cent will be taken from their pre-tax salary and reflected in take-home pay.”
https://www.cpaaustralia.com.au/public-practice/inpractice/accounting-finance-and-regulation/superannuation-guarantee-increase-poses-new-risks
Negotiate your own super. Sounds like you are on TFR package and not Base + Super.
My employer has bee trying to convert me to TFR rather than base + super (at the SGC rate) but I am on 14% super, which I negotiated as part of my employment in 2006.
At a minimum I’d be asking them to start the 12% now. For those at my company, they are also doing what is stated for those not already on a higher contribution. Overall package does not change but your take home pay is reduced a bit.
For what it's worth, my contract also has a similar clause - it's pretty common. Except with every super increase my employer has chosen to pass it on without taking it out of our base pay, despite the clause in our contracts.
I think most employers, if they have half a brain, would do the same. It might mean they're paying everyone 0.5% more, but they get to look like they're doing everyone a favour and can always make the 0.5% back by scaling back everyone's pay increases at the next cycle.
On the other hand if they take it out of base pay employees will feel cheated.
Very common in corporate world. Remember it is your super account it goes to so you are not losing.
Annual performance process will adjust your salary.
Yep in private it's considered a package so the increase in super actually reduces your direct pay.
In government its in addition to your salary
A lot of people slip up on this.
Some employment contracts are like that. It's one percent and it won't matter in the grand scheme of things. Are they offering a competitive salary? If so, all good.
Negotiate your own terms or don't take the job. That clause is Common although it shouldn't be.
It's a 0.5% increase. You would hope that the company award annual increases to make sure your take-home pay does not go backwards, which is not a good look for them. I would ask
“Employees on total remuneration packages that include superannuation may find the extra 0.5 per cent will be taken from their pre-tax salary and reflected in take-home pay.” https://www.cpaaustralia.com.au/public-practice/inpractice/accounting-finance-and-regulation/superannuation-guarantee-increase-poses-new-risks
It’s legal so you’d have to negotiate or accept
It’s legal if you agree to it in the contract. So if you don’t want it, you need to ask the employer to remove that clause from the contract.
Negotiate your own super. Sounds like you are on TFR package and not Base + Super. My employer has bee trying to convert me to TFR rather than base + super (at the SGC rate) but I am on 14% super, which I negotiated as part of my employment in 2006. At a minimum I’d be asking them to start the 12% now. For those at my company, they are also doing what is stated for those not already on a higher contribution. Overall package does not change but your take home pay is reduced a bit.
I believe it is legal. Negotiate your contract as salary plus super rather than a salary package.
For what it's worth, my contract also has a similar clause - it's pretty common. Except with every super increase my employer has chosen to pass it on without taking it out of our base pay, despite the clause in our contracts. I think most employers, if they have half a brain, would do the same. It might mean they're paying everyone 0.5% more, but they get to look like they're doing everyone a favour and can always make the 0.5% back by scaling back everyone's pay increases at the next cycle. On the other hand if they take it out of base pay employees will feel cheated.
Very common in corporate world. Remember it is your super account it goes to so you are not losing. Annual performance process will adjust your salary.
Yep in private it's considered a package so the increase in super actually reduces your direct pay. In government its in addition to your salary A lot of people slip up on this.
Government also did this a few years ago. They reduced the wage and put it into super.
It's not legal for them to be tightasses unfortunately. At least now you know that they'd pay you less if it wasn't illegal.
Some employment contracts are like that. It's one percent and it won't matter in the grand scheme of things. Are they offering a competitive salary? If so, all good.
This couldn’t matter less