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ARTICLE · 27 NOVEMBER 2024

Is superannuation paid on workers compensation payments in NSW?

Should superannuation contributions continue to be made when receiving workers compensation payments? It depends.

AustraliaEmployment and HR

Superannuation and workers compensation are two separate entitlements, but the question often arises whether superannuation contributions should continue to be made when an employee is receiving workers compensation payments. In New South Wales (NSW), the answer to this is not straightforward, and depends on various factors such as the nature of the worker's employment agreement, the specific award they are covered under, and whether they are able to return to work in some capacity.

Superannuation and workers compensation – an overview

Under Australian law, employers are generally required to make superannuation contributions for their employees. This obligation is mandated by the Superannuation Guarantee (Administration) Act 1992 (Cth), which currently requires employers to contribute 11.5% of an employee's ordinary time earnings (OTE) into their superannuation fund. These contributions are designed to help employees save for their retirement, and they are

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