Do we have to pay superannuation on overtime?
Do award/agreement-free employees get super on overtime that is not paid at a higher rate?
Super should be paid on ordinary time earnings, which means the ordinary hours worked (i.e. not overtime). However, if ordinary hours of work are not stipulated, then all hours worked will be ordinary hours.
For example, if the award/agreement-free employee is on a contract that provides their ordinary hours are 38 hours per week, and they happen to work 41, then super is only payable on the 38 hours.
On the other hand, if an award/agreement free employee has a contract that does not stipulate ordinary hours, and there is no readily discernible pattern of customary, regular, normal or usual hours, then all hours worked in a week will be ordinary hours of work and all wages are ordinary time earnings attracting super.