Share and Follow
An Australian worker has been left shocked after learning their company is reducing their take-home pay when the compulsory super guarantee rate increases
The super guarantee rate will jump from 10.5 per cent to 11 per cent on July 1 this year, meaning employees will have more money tucked away for their retirement.
For workers on a total fixed remuneration (TFR) contract, their superannuation is included in their salary, and is not an additional sum on top. This means your employer might choose to cut your take-home pay so they can cover the increase in super contributions.
This is not the case for Aussies who are paid super on top of their salary.
One Aussie worker recently received an email from their employer saying that to make up for the increase in superannuation, the amount going into their pockets on payday would be reduced.
‘Is this even legal?’ they wrote alongside a photo of the email to Reddit.
An Australian worker has been left shocked after learning their company is reducing their take-home pay because their superannuation is increasing
The email said the changes would be seen in the worker’s July payslip.
‘Please be aware this increase will impact your take-home pay,’ it read.
‘For employees on total fixed remuneration (TFR), the increase in super will reduce your base salary and take-home net pay.
‘For example, an employee on an annual TFR of $100,000 (inclusive of super) who currently receives $90,497.74 base salary plus $9,502.26 (10.5 per cent) super, will instead receive $90,090.09 base salary plus $9,909.91 (11 per cent) super.’
The worker was informed by fellow Reddit users that if they signed a contract saying they’d be on TFR then the changes to their take-home pay were entirely legal.
Read Related Also: The key reason why the world’s richest people want to move to Australia
But many pointed out some employers would increase the salary as a whole to make up for the changes to super.
‘Legal and very scummy,’ one person said.
‘Thankfully my employer isn’t scummy and will be forking out the difference,’ said another.
One Aussie worker recently received an email from their employer saying that to make up for the increase in superannuation, the amount going into their pockets on payday would be reduced (stock image)
‘As mentioned if your employment contract says your salary is ‘inclusive’ of compulsory super payments then you’re pretty screwed,’ commented one.
‘Otherwise you can push back, cop it or find somewhere to work that wouldn’t do this – of which im sure there would be plenty of workplaces. Because this is a low, dog of an act by the employer.’
Others pointed out the employer had every right to make the changes, and suggested the worker find another position with a company where super is additional to their salary.
Many also clarified that the employee’s overall pay was not changing, just that the worker would have more super saved when they retire.
‘To be fair, the amount you earn isn’t really decreasing. I still think it’s s***ty to do this, but from the business perspective – it still costs the business the same amount. Pay day super will be a good thing,’ one said.
The super guarantee will keep going up over the next two years by 0.5 per cent until it reaches 12 per cent on July 1, 2025.
Source: | This article originally belongs to Dailymail.co.uk
