Super rise prised from workers
Experts say workers may end up paying for their own super rise.
Australia’s superannuation guarantee lays out a set proportion of wages that employers must contribute to workers' retirement savings. The rate will rise from 9.5 per cent to 10 per cent from July 1.
However, employment lawyers say that if an employee's contract includes their super in their total package, their boss could take that money out of their base pay.
“Provided the employees don't drop below the minimum permitted wages in an award enterprise agreement, or the minimum wage, then yes, it is permitted,” says Hall & Wilcox partner Fay Calderone.
She said big companies are less likely to deny workers super rises.
“The businesses in the middle - where they are large enough where they've had their contracts prepared - they've had the history behind them where this has happened before,” she said.
The Australia Institute's chief economist Richard Denniss agrees.
“There have been instances of this in the past, but I fear it's becoming more prevalent for the simple reason that more and more employees are on the kind of contracts that allow it to happen,” Mr Denniss says.
“Unfortunately, I think a bunch of smaller and medium sized businesses are feeling that they're going to get away with it. That no one's going to notice. And even if someone notices, no-one's really going to care.
“But let's be clear, if thousands of employers do this, that's exactly why we don't get wage growth in Australia.”
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