Know Your Rights – Salary Sacrifice for Superannuation

with Brett Peters….

Salary Sacrifice for Superannuation

18.1 Notwithstanding the wages prescribed in this Award, an employee, other than a temporary or casual, may elect, subject to the agreement of State Transit, to sacrifice a portion of the base wage payable under this Award to additional employer Superannuation contributions. Such election must be made prior to the commencement of the period of service to which the earnings relate. In this clause, “superable salary” means the employee’s wage as notified from time to time to the New South Wales public sector superannuation trustee corporations.

18.2 Where an employee has elected to sacrifice a portion of that payable wage to additional employer superannuation contributions:

(i) subject to Australian Taxation law, the sacrificed portion of wage will reduce the wage subject to appropriate Pay As You Go (PAYG) taxation deductions by the amount of that sacrificed portion; and

(ii) any allowance, penalty rate, payment for unused leave entitlements, weekly worker’s compensation or other payment, other than any payments for leave taken in service, to which an employee is entitled under the Award or any applicable Award, Act or statute which is expressed to be determined by reference to an employee’s wage, shall be calculated by reference to the wage which would have applied to the employee under this Award in the absence of any salary sacrifice to superannuation made under this Award.