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Employment Law ChangesSeptember 8, 2014
The recent changes to superannuation have affected millions of workers. The Australian government this week has abolished the mining tax and will guarantee that super contributions will remain at 9.5% until 2021. It is interesting to note that for companies that include superannuation payments as part of a salary package, many have chosen to absorb the increase in mandatory contributions instead of lowering the take-home-pay of their employees.
According to a recent survey by Aon Hewitt a human resources group, nearly 40% of companies already pay above the minimum super contributions rate. These companies are typically positioned to be less affected by financial change and are more aware of their total employment associated costs.
Employers who choose to give a bigger super contribution to their employees not only provide greater retirement security but it also prompts their staff to become more engaged with their individual super decisions.
Not everybody is happy about the recent superannuation freeze. Because of the length of the fixed 9.5% retirement funds, consumer groups are outraged. As the majority of Australian employees rely on their superannuation payment for retirement planning, the fixed rate means less money invested and a lower super balance when they retire.
Employsure can inform you of any changes to superannuation contributions and how it affects your payroll. We can give you options around salary packaging and advice on how to ensure that you are providing your staff with correct wages and superannuation contributions. If you would like to find out more or review your current payroll superannuation payments please call Employsure today on 1300 651 415 or fill in the form below.
*Information sourced via the Australian Financial Review.