What does a Salary Package include in Australia?

In Australia, employee compensation is commonly structured as a salary package, which includes several key elements:

  1. Base Salary: This is the fixed amount an employee earns for their work, excluding additional contributions or benefits. Notably, superannuation contributions are not included in the base salary.

  2. Superannuation Contributions: Employers must contribute a percentage of an employee’s ordinary time earnings to a superannuation fund (retirement savings account).

    • The current contribution rate is 11% as of 2024.
    • This will increase to 11.5% from July 1, 2024, and 12% from July 1, 2025, ensuring greater retirement security for employees.

  3. Salary Payment:

    • Recurrence: Salaries are typically paid on a monthly basis in Australia.
    • Payment Date: Employers usually disburse payments at the end of the month.
    • Additional Salaries: There is no requirement in Australia for a 13th or 14th salary, which are common in some other countries.


Key Consideration: Salary Package vs. Base Salary

When discussing salaries, it is essential to distinguish between the total salary package (which includes superannuation) and the base salary (which does not). For example, an AUD 100,000 salary package might consist of AUD 89,000 in base salary and AUD 11,000 in superannuation contributions.

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