The Superannuation Guarantee (SG) is the mandatory system of employer contributions to employees’ superannuation (retirement) funds in Australia . By law, employers must contribute a minimum percentage of an eligible employee’s ordinary earnings to a complying super fund; this SG rate is set by legislation (gradually increasing to 12% by 2025) and ensures workers accumulate savings for retirement .
The SG was introduced to complement the Age Pension by boosting individual retirement savings and reducing reliance on public pension support. For HR and payroll, meeting SG obligations is a key compliance duty – contributions must be calculated correctly and paid on time (at least quarterly) to avoid penalties such as the Superannuation Guarantee Charge . Ensuring employees receive their proper superannuation entitlements is a fundamental aspect of Australian payroll and benefits administration.
