Employers should be paying Superannuation on Annual Leave Loading for OTE (Ordinary Time Earnings) – the employee’s usual hours of work. The employer is required to pay Super on OTE once the earnings are actually paid to the employee. Not all payments that form part of salary or wage, form part of OTE (overtime etc.)
When employees are on leave, they are not paid for actual attendance at work or for services, but receive Annual Leave Payments as a continuation of their ordinary pay during their ‘ordinary hours of work’, taking the place of earnings in respect of their actual hours worked. Therefore any salary or wages an employee receives while on annual leave, long service leave or sick leave is in respect of their ordinary hours of work and is OTE – and Super payments are required.
Superannuation is paid on Annual Leave Loading!! Employers should be paying Superannuation on Annual Leave Loading for OTE (Ordinary Time Earnings) &...
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