Yahoo Finance Sneaky detail that could cut your pay on July 1
Some Aussie workers are getting a cut to their take-home pay.
It could be time to take a closer look at your employment contract, with some Aussie workers set to see a cut in their take-home pay from next month.
Aussie workers will receive higher superannuation payments from July 1, when the compulsory super guarantee rate increases from 10.5 per cent to 11 per cent.
If you are currently paid your salary plus super, it’s unlikely you’ll see any reduction to your take-home pay.
But, if you are paid a salary package inclusive of super, your employer might choose to cut your take-home pay to cover the increased super contributions.
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‘Check your contract’
One Aussie took to the popular AusFinance subreddit to share an email they had received from their employer advising them that their take-home pay would be reduced.
“From 1 July 2023, the Super Guarantee will be 11 per cent. Please be aware this increase will impact your take-home pay. Changes will be reflected in July payslip,” the email said.
“For employees on total fixed remuneration (TFR), the increase in super will reduce your base salary and take-home net pay.”
Aussies in the comments said this was legal if the user had signed a TFR, where the package included the employee’s salary plus super.
“As mentioned, if your employment contract says your salary is ‘inclusive’ of compulsory super payments, then you're pretty screwed. Otherwise you can push back, cop it or find somewhere to work that wouldn't do this - of which I'm sure there would be plenty of workplaces,” one user commented.
“Check your contract. If your salary is inclusive of super then that’s the deal,” another person said.
While some Aussies thought it was a “scummy” move from the employer, others argued it was agreed to in the employment contract and the extra money had to come from somewhere.
“To be fair, the amount you earn isn’t really decreasing. I still think it’s shitty to do this but, from the business perspective, it still costs the business the same amount,” one user said.
Super guarantee increases
The super guarantee rate has been increasing by 0.5 per cent since July 1, 2021. It’s set to continue to rise by 0.5 per cent each year until it reaches 12 per cent from July 1, 2025.
Last year, a survey by Mercer - of almost 120 organisations across Australia - found 8 per cent of businesses were planning to cut their employees’ take-home pay to fund the increased super contributions in full.
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