How to check if your employer is paying your super correctly

Unpaid super costs Australian workers billions of dollars each year. With Payday Super set to make contributions more visible, here's how to check you're getting the super you're entitled to.

Australian workers miss out on billions of dollars in unpaid super each year. While new Payday Super reforms are designed to make contributions easier to track, it's still important to check you're receiving the correct amount. Here's how to make sure your employer is paying your super properly.

Unpaid super is a long-running problem in Australia. Even though employers are generally required to contribute 12% of an employee's ordinary time earnings to super, industry groups say it doesn't always happen, leaving workers with billions of dollars less for their retirement.

For a long time, it's been hard for some people to spot if they're being short-changed, but experts say a new rule coming into force this month should be making a difference.

Payday Super explained

Until July 1, your employer could pay any super it owed you into your fund account as sporadically as once every quarter.

James Koval, chief policy officer at the Association of Superannuation Funds of Australia, says this made it difficult for people in some jobs to know if they were getting their 12% guarantee.

"For those in less secure work or people who have irregular hours, it's always been very tricky to check [their] super once every three months and go backwards and go: 'Is that 12% of every hour that I worked over the last three months?'"

But now, as of July 1, your employer is legally required to make the 12% contribution into your super fund account at the same time as it pays your salary or wages.

This means instead of getting your super every quarter, you might be receiving it weekly, fortnightly or monthly.

How Payday Super makes it easier to spot unpaid super

The requirement for super to be paid more often won't prevent underpayments from happening, but it should make them easier to identify.

"It's going to be much easier for people to check in with whether their super is actually arriving on time, whether it's the right amount," says Koval.

"Even if the amount of money being received hasn't changed over the course of the year, just the frequency makes things so much simpler."

Andrew Buchan, partner at accounting firm HLB Mann Judd, agrees and thinks it may lead workers to become more engaged with their retirement fund.

"I think it will make people a little bit more aware, curious and interested in what's happening with their super," he says.

"Because money is going to drop in on a more regular basis... they might want to tweak their portfolio or the asset allocation."

How to check you're getting the right amount of super

"[Payday Super] means the amount that's going into super on your pay slip is the same as what will land in your [superannuation] account a few days later," says Koval.

"After you get your pay slip, log into your super account and just make sure that the money's arriving [and] that it's the correct amount."

Upon logging into your fund account, do the following:

• Log in to your super fund account.
• Look for employer contributions rather than your overall balance.
• Compare the contribution amount with the super listed on your payslip.
• Check that contributions are arriving shortly after you're paid.
• Keep records of any missing or incorrect payments.

Payday Super issues to be aware of

Experts say there may be some "teething issues" as employers who haven't already been making payday contributions switch to doing so.

But in the long run, super contributions from your employer should appear in your super account a few days after you've been paid your salary or wages.

"It's important that contributions reach super funds within seven business days after payday for it to be considered paid on time (unless longer applies, such as for new employees)," says Australian Tax Office (ATO) Deputy Commissioner Emma Rosenzweig.

What to do if you're not receiving the right amount of super

There can be significant consequences for you and your employer if the correct amount of super isn't paid.

Not only will you end up with a lower retirement income, but you might also lose any insurance cover you receive from your super fund.

Here's what to do if your employer hasn't paid your super in full, on time or to the correct fund:

1. Raise it with your employer

Mistakes do happen, such as incorrect fund details or payroll errors, and these can sometimes be fixed quickly, so your first port of call should be to let your employer know there's an issue.

Make sure you keep records of emails, messages and pay slips in case the issue escalates.

2. Report unpaid super to the ATO

If your employer does not resolve the issue, you can report unpaid super contributions to the ATO.

Even small super shortfalls can add up over time, so regularly checking your payslips and super account could help you spot problems before they have a major impact on your retirement savings.

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