In a huge win for union members, legislation has passed to ensure superannuation payments are made on pay day.
The SDA has been advocating for Pay Day Super for several years, and has been calling on the Federal Government to urgently legislate this since its re-election.
This will take effect from July 2026.
How often is Super currently paid?
Right now, most employers only pay superannuation every three months, not every pay day.
By law, there is no requirement for employers to pay it more frequently.
Paying superannuation on pay day instead of each quarter means you’ll earn more interest on your super sooner, increasing your overall balance.
When super is only paid quarterly, the benefits of compound interest are lost for the individual employee – that money is sitting with the employer for 3 months when it could have been earning interest for the employee.
According to research by the Super Members’ Council of Australia, on average, Australians could see their super balances boosted by almost $8000 due to this change.
Paying superannuation on pay day will lead to more transparency around super payments and make it easier to chase up any unpaid super.
Super is a part of your pay. It only makes sense that superannuation payments should be deposited into your super fund at the same time that you get paid.
There’s still more to do.
Currently, workers under 18 years old don’t earn superannuation unless they work more than 30 hours a week. It’s unfair and it’s locking thousands of workers out of saving for their future.
The SDA is continuing to call on the Federal Government to pay superannuation to all workers, regardless of their age.
