Using ordinary time earnings to calculate the super guarantee

From 1 July 2008, Employers must use ordinary time earnings as defined in the super guarantee law, to calculate super guarantee contributions for your employees. This ensures all employees are treated the same for super guarantee purposes.

What are ordinary time earnings?

Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including:

• over-award payments
• commissions
• allowances, and
• paid leave.

Ordinary time earnings do not include overtime (subject to certain exceptions).

Checklist for salary or wages and ordinary time earnings

http://www.ato.gov.au/businesses/content.asp?doc=/content/39205.htm