Salary Before Super Formula:
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Salary before super (superannuation) is the base salary amount before employer superannuation contributions are added. In Australia, employers must pay a percentage (currently 11%) of an employee's ordinary earnings as superannuation on top of their salary.
The calculator uses the following equation:
Where:
Explanation: The equation calculates the base salary by removing the superannuation component from the total compensation package.
Details: Understanding your salary before super is important for budgeting, comparing job offers, and understanding your taxable income. It helps employees know exactly how much they'll receive in their bank account versus what goes to superannuation.
Tips: Enter your total compensation package (including super) in AUD and the super rate as a percentage (e.g., 11 for the current standard rate). Both values must be positive numbers.
Q1: What is the current super rate in Australia?
A: As of July 2023, the super guarantee rate is 11% of ordinary earnings, increasing to 12% by 2025.
Q2: Is super included in my taxable income?
A: No, employer super contributions are generally not included in your taxable income, though they may be subject to contributions tax.
Q3: Can I salary sacrifice into super?
A: Yes, salary sacrificing into super can be tax-effective but reduces your take-home pay. This is different from employer contributions.
Q4: Does this calculator work for part-time salaries?
A: Yes, simply enter your total annual compensation including super, regardless of full-time or part-time status.
Q5: What if my super rate changes during the year?
A: For accurate calculation, use the predominant super rate for your employment period or calculate separately for each rate period.