Pay Day Super Contributions

Starting 1 July 2026, the new "Pay Day Super" measure will require employers to make Superannuation Guarantee (SG) contributions at the same time as employee wage payments. This means contributions will need to be deposited into employees’ super accounts within seven days of each pay cycle. This change will enable employees to monitor their super more effectively and enhance their financial well-being. 

Key Points:

• New employees will have their contribution due date extended for the first two weeks of employment

• Small or irregular wage payments outside the regular pay cycle won’t count as a 'payday' for the purposes of this measure and are not due until the next scheduled payment

Benefits of this Change:

• Employees will receive their super contributions more regularly, minimising unpaid super issues

• This shift supports better monitoring of entitlements and enhances payroll management for employers

Potential Challenges:

• Businesses may face immediate cash outflows, impacting liquidity

• More precise budgeting will be necessary to accommodate same-day contributions

• Businesses may incur additional compliance costs for adjusting payroll systems

While this new requirement may involve some adjustments in payroll processes, it presents an excellent opportunity for businesses to ensure compliance and strengthen their commitment to employee benefits.

For further information regarding Pay Day Super please click here.