Ordinary time earnings

Employers are required to pay a minimum superannuation guarantee contribution on employees’ ordinary time earnings (OTE).

OTE are generally what your employees earn for their ordinary hours of work including:

  • over-award payments
  • bonuses
  • commissions
  • shift loading
  • payment in lieu of notice
  • lump sum payments of unused leave other than upon termination of employment.

The types of payments excluded from OTE include:

  • payments for unused leave if paid as a lump sum on termination of employment
  • overtime payments

LGIAsuper cannot give definitive advice regarding what should be included in OTE. Employers should refer to the ATO website for a more complete definition and should seek their own advice on what constitutes OTE