SUPERANNUATION PAYMENTS WHILE ON WORKERS COMPENSATION?
Superannuation is generally not payable while an employee is on workers compensation however there are exceptions.
The Australian Tax Office superannuation guarantee ruling SGR 2009/2 in effect since July 2009 states that workers compensation payments, including top up payments where no work is being performed by an employee are not to be included in an employee’s ordinary time earnings for the purposes of calculating payment of superannuation.
However where work is being performed by an employee on say suitable duties and is receiving workers compensation payments including top up payments, those payments are to be included in the employee’s ordinary time earnings for the purposes of superannuation.
However Modern Awards can allow payment of Superannuation when off work due to an injury.
The Fair Work Act 2009 allows Modern Awards to contain additional provisions dealing with superannuation contributions during periods of leave or while an employee is absent from work due to injury or work related illness.
Each Modern Award has different clauses in relation to superannuation however the majority of the modern awards now provide that an employer must make superannuation contributions during periods where a worker is absent from work due to a work related illness.
You need to review the applicable modern award to determine whether an employee’s entitlement to superannuation contributions when absent on workers compensation is payable or not.
For more on information on making a superannuation claim in Sydney, feel free to browse our services pages or alternatively, contact our friendly team today on 1300 851 201.
Garling and Co 2019.
Matthew Garling, Founder of Garling & Co is a NSW Law Society Accredited Specialist in Personal Injury Law. He specialises in compensation law and has acted on behalf of thousands of injured people in work accidents, motor vehicle accidents and negligence cases over the last 20 years.