Home - Do we pay superannuation for pay in lieu of notice?
January 31, 2022 on chapter Superannuation

We have terminated the employment of one of our staff members and have decided that we do not require them to work the notice period. When paying this staff member in lieu of notice, do we include superannuation payments?

Payments in lieu of notice are considered ordinary time earnings. As super contributions are payable on an employee’s ordinary time earnings, employers must pay super contributions where an employee receives a termination payment in lieu of notice.

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