Have you ever wondered why on checking your Super Statement you find out that
your member contributions are greater than your employer contributions?
Your Employee contribution is deducted from the net pay after paye tax has been deducted.
Your Employee contribution is calculated based on your gross salary.
Your employer contribution is calculated from gross pay then ESCT (tax) is deducted from this.
Gross Pay $1000.00
PAYE tax $175.00 $1000 x Tax Rate say 17.5%
Employee Contribution $30.00 $1000 x 3% (minimum)
Total Deductions: $205.00
Net Pay $795.00 $1000 – $205
Super Statement shows:
Employee Contribution $30.00 $1000 x 3% -already taxed with PAYE
Employer Contribution $24.75 $1000 x 3% = $30.00
less ESCT (tax) 17.5% $ 5.25