The minimum and award wage is increasing by 3.5% in July, but did you know compulsory super is also increasing?
The super guarantee is the very minimum your employer must pay into your super fund – and from 1 July 2025, it’s increasing to 12%. It’s been steadily rising by 0.5% each year for the past 12 years, as a measure proposed by the Rudd Labor government. This is the final increase planned for the foreseeable future. United Workers Union believes all workers should have a dignified retirement.
Do all workers get super?
Superannuation is compulsory in Australia. If you’re over 18 and working, your employer is required to pay your super. Under-18s working more than 30 hours per week, casual workers and people on government-funded paid parental leave are now also entitled to the superannuation guarantee as it has gradually expanded to include workers who were previously excluded. In 1992, only 10% of workers retired with super. Now, 90% of workers in Australia have funds in super. It’s been a long campaign, led by unions like UWU.
12 per cent super is good for younger workers
A 0.5% increase may not sound like much now, but it represents an estimated $22,000 extra in retirement savings for workers now in their 30s and 40s. It’s a much-needed reform for younger workers, who will benefit from it the most. For older workers, it represents a minimum of $300 extra in super payments per annum.
It’s good for parents too
Anyone claiming government-funded paid parental leave will now also get super paid during their leave. If you’re not entitled to paid parental leave from your employer, from July, you will be eligible for the government-funded 24 weeks (up from the previous 22 weeks) that will now also include super. This is very important for women who retire on average with a third less super than men, mainly because of career gaps taken for caring responsibilities.
How do I know if my employer is paying my super correctly?
Currently, your employer is required to pay super into your fund only once per quarter. That’s only 4 times per year! There are fines for employers who don’t meet these deadlines.
Quarter | Period | Payment due date |
1 | 1 July – 30 Sept | 28 Oct |
2 | 1 Oct – 31 Dec | 28 Jan |
3 | 1 Jan – 31 Mar | 28 April |
4 | 1 April – 30 June | 28 July |
Although your super is listed on your payslip, you still need to check your super fund regularly to make sure your employer is paying your super on time. Timing matters with super, because the whole idea is that it accumulates over time. The longer your super is in your account, the more it grows. It’s estimated young workers could be losing about $6000 of retirement savings due to late payments.
Pay Day Super coming in July 2026
Another reform to superannuation – also won by unions – is coming in July 2026. It’s known as Pay Day Super and it means your super will be paid into your account more regularly. From 1 July, your employer will be required to pay your super in the same pay cycle as your wage – usually every 2 weeks.
Should I ever access my super before retirement?
It’s fair to be curious about early access to your super when you are experiencing severe financial hardship. Here is an audio segment from our recent Member Workshop, Cost of Living Hacks, that addresses this issue.
If you’re a member, you can check out our full Member Workshop on Cost of Living Hacks, presented in collaboration with Financial Counselling Australia.
Have you heard of Industry Super Funds?
United Workers Union partners with HESTA, HOSTPLUS and Australian Super. Industry super funds like these include workers on their boards and are profit-to-member organisations, meaning any profit goes to members of the fund instead of external shareholders or CEOs. Industry SuperFunds is an organisation that can help you find a fund that is knowledgeable about your work, your industry, and can therefore tailor your cover to your particular circumstances.
‘Super stapling’ and consolidating your accounts
Did you know, since 2021 your first super fund becomes your default fund. Before super stapling, many workers lost out by having several super funds and paying too many fees. Consolidating your super into one account saves you money. It’s your choice which fund eventually becomes your default. Always have your super fund details ready when you’re starting with a new employer.
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