Updated on 15 January 2025
2 minute read
When you’re looking for a new job and comparing salaries, you might see the phrase 'exclusive of superannuation'. But what does it actually mean?
Put simply, when a salary is advertised as "exclusive of super", it means the amount doesn't include your employer's super contributions. In other words, your super is paid on top of this figure.
Let's say you're offered a job with a salary of $70,000 exclusive of super. This means you'll get:
$70,000 as your base salary
Plus a minimum of 11.5% (the superannuation guarantee rate as of December 2024) paid into your super fund.
So, your total package would be a minimum of $70,000 + $8,050 (11.5%) = $78,050.
On the other hand, "inclusive of super" means the advertised salary figure includes your employer's super contributions.
If you're offered $78,050 inclusive of super, it breaks down like this:
$70,000 as your base salary
Plus $8,050 (11.5% of the base salary) paid into your super fund.
Your agreement may include super that's above the superannuation guarantee rate, which could mean you'll get more in super and less in base salary. It's important to check this with your employer.
Understanding whether your salary is inclusive or exclusive of super helps you get a clearer picture of your total pay package. It's a good idea to check this with your employer or potential employer if you're unsure.
Some employers may offer extra benefits, like:
Your super contributions are taxed differently to your income. They're usually taxed at 15% when they enter your super fund, which is often lower than your marginal tax rate.
Your employer will take out tax on your salary at the time they pay you. Your super fund will generally take the concessional tax out of your employer contributions.
Whether you're starting a new job or planning for retirement, we're here to support your financial future.
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