From 1st July 2021 most employers will increase their contribution to their employees compulsory superannuation from 9.5% to 10%.
This is an extra $5 per week for someone on $1,000 per week, going into their retirement fund.
However, not all employees are happy with that money going into their super fund.
Some people, on a salary package including super, will have the extra super contribution taken out of their salary.
Most people are on a standard wage plus super. They get the extra 0.5% into their super, without a wage reduction.
A few people are on a negotiated Salary package, comprising their Salary and Super into an agreed total figure.
They still get that total figure, but with slightly more in super and correspondingly lower in salary, each time the super percentage increases.
Current legislation states that Compulsory Super will increase from 9.5% to 10% on 1July 2021, and then a further 0.5% each year as follows.
10.5% on 1 July 2022
11.0% on 1 July 2023
11.5% on 1 July 2024
12.0% on 1 July 2025