How Much Super Can I Salary Sacrifice? Award Coverage and Pay Floors Explained

How Much Super Can I Salary Sacrifice? Understanding the Rules

If you are asking “how much super can I salary sacrifice,” you are likely looking for the maximum amount you can contribute from your pre-tax pay into your superannuation account. This guide explains what this site’s reference covers and what it does not. The reference provides the legal minimum wage, award rates, and the super guarantee percentage, but it does not include the specific salary sacrifice cap set by the Australian Taxation Office. Instead, we will clarify how salary sacrifice interacts with award coverage and award-free rates.

The Legal Minimum and Super Guarantee

The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week for a full-time adult employee. Casual employees receive a loading of 25%, making the casual rate $33.05 per hour. On top of these wages, employers must pay the super guarantee of 12% of ordinary time earnings. This is a compulsory employer contribution, not a salary sacrifice amount.

Award Coverage vs Award-Free Rates

Most employees are covered by a modern award or an enterprise agreement. Awards set minimum wages for specific industries and occupations. From the first full pay period on or after 1 July 2026, modern award minimum wages rise by 4.75%. However, the lowest ongoing classification cannot fall below the national minimum of $26.44 per hour. Introductory rates for the first six months are capped at $25.74 per hour or $978.10 per week.

For award-free employees (those not covered by any award or agreement), the national minimum wage applies. Junior employees under 21 have percentage-based rates (e.g., under 16: $9.73 per hour, casual $12.16). Apprentices and trainees follow the Miscellaneous Award rates.

Salary sacrifice is a separate arrangement. It does not change the minimum wage or award rate you are entitled to. Your employer must still pay at least the relevant floor before any salary sacrifice deduction. The super guarantee is also calculated on your ordinary time earnings before salary sacrifice, unless the ATO rules specify otherwise.

What the Reference Does Not Cover

This site’s reference does not include the concessional contributions cap for salary sacrifice. That cap is set annually by the ATO and can change. As of the 2026-27 tax year, the cap is typically around $30,000, but you must verify with the ATO. The reference also does not cover the Medicare levy surcharge, low income tax offset, or HELP repayment thresholds. Salary sacrifice can reduce your taxable income, but it may affect your eligibility for certain government benefits.

Negotiated Salaries and Enterprise Agreements

If you are covered by an enterprise agreement, your salary may be higher than the award or national minimum. Salary sacrifice can be part of a total remuneration package, but the agreement must still comply with the National Employment Standards and the super guarantee. Always check your agreement’s terms.

Summary

• The legal minimum wage is $26.44 per hour (adult, award-free).
• The super guarantee is 12% on top of ordinary time earnings.
• Salary sacrifice limits are set by the ATO, not by this reference.
• Award or agreement rates can be higher than the national minimum.
• Salary sacrifice does not reduce your minimum entitlement.

For more details, see Which minimum wage applies and Rate tables.

Frequently Asked Questions

What is the super guarantee rate?

The super guarantee is 12% of ordinary time earnings, paid by the employer on top of your wages. This rate applies from 1 July 2026. It is not a salary sacrifice limit.

Does salary sacrifice affect my minimum wage?

No. Salary sacrifice is a voluntary arrangement to contribute pre-tax income to super. It does not reduce the minimum wage or award rate you must receive. The employer must still pay at least the relevant minimum wage or award rate before any salary sacrifice deduction.

Where can I find the current salary sacrifice cap?

The concessional contributions cap is set by the Australian Taxation Office (ATO) and is not included in this site's reference. Check the ATO website or speak to a tax professional for the current annual limit.

For the published floors, see the rate tables and how the figures work.