Does OTE include super?

No. OTE is the base earnings before super is added. The super guarantee (currently 12%) is paid on top of your OTE. For example, if your OTE is $1,000 per week, your employer must contribute an extra $120 to your super fund. Salary sacrifice arrangements can affect how OTE is calculated for super purposes.

Do I get super on overtime?

Generally, no – overtime payments are not OTE for super guarantee purposes, provided your ordinary hours are clearly identified in your award or agreement. However, if your ordinary hours are not clearly defined, all hours you work may be considered ordinary hours, and then overtime payments would be included in OTE. Check your award or agreement to be sure.

What does OTE mean in salary: Understanding ordinary time earnings and your pay floor

Q: Is OTE the same as my salary?

Not exactly. Your salary may include overtime, bonuses, or allowances that are not ordinary time earnings (OTE). OTE is the amount you earn for your ordinary hours of work – the hours that are regular and usual under your award or agreement. For super guarantee, your employer must pay 12% on your OTE, but overtime payments are generally not OTE unless your ordinary hours are not clearly defined.

The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week for adults, but OTE for super is based on ordinary hours and excludes overtime.

What does OTE mean in salary?

If you have ever looked at your payslip and wondered “what does OTE mean in salary?”, the answer is straightforward: OTE stands for ordinary time earnings. It is the amount your employer pays you for your ordinary hours of work – the hours that are regular and usual under your award, agreement, or employment contract. OTE is important because it is the figure used to calculate the minimum super guarantee contribution your employer must make on your behalf.

OTE vs your salary

Your salary or wage may include many components: base pay, overtime, bonuses, commissions, allowances, and penalty rates. Not all of these count as OTE. According to the Australian Taxation Office, OTE includes payments for ordinary hours, casual loading, shift penalties (including public holiday penalties), piece rates during ordinary hours, and performance bonuses. However, overtime payments are generally not OTE – provided your ordinary hours are clearly identified in your award or agreement. If they are not clearly identified, then all hours you work are treated as ordinary hours, and everything becomes OTE.

For example, Pierre works under an award that states 38 ordinary hours per week. He works 48 hours, with 10 hours paid at overtime rates. His OTE is only the 38 ordinary hours; the overtime is not OTE for super purposes. But all 48 hours are still salary or wages for other purposes.

The national minimum wage and OTE

The Fair Work Commission sets the national minimum wage. From 1 July 2026, the adult national minimum wage is $26.44 per hour or $1,004.90 per week (based on a 38-hour week). Casual employees receive a 25% loading, making the casual rate $33.05 per hour. These are the legal minimums for award-free and agreement-free employees.

However, OTE is not the same as the minimum wage. Your OTE could be higher than the minimum if you are covered by a modern award or enterprise agreement that sets a higher rate for your classification. The award backstop ensures that ongoing adult employees cannot be paid less than $26.44 per hour, and introductory rates (first six months) cannot be less than $25.74 per hour.

Super guarantee is paid on OTE

Your employer must pay super guarantee of 12% on top of your OTE. This is a separate payment – it does not come out of your salary. For example, if your OTE is $1,000 per week, your employer contributes an extra $120 to your super fund. The ATO provides a detailed list of which payments count as OTE, including ordinary hours, casual loading, shift penalties, and performance bonuses. Overtime, annual leave loading referrable to lost overtime, and call-back allowances are generally not OTE.

Award-free juniors and OTE

If you are under 21 and award-free, your minimum wage is a percentage of the adult rate. For example, a 16-year-old award-free junior earns 47.3% of $26.44, which is $12.51 per hour (casual $15.64). OTE for super purposes is still calculated on the amount you actually earn for your ordinary hours, even if that amount is below the adult minimum. The super guarantee is 12% of that OTE.

Average weekly ordinary time earnings (AWOTE)

The Australian Bureau of Statistics publishes Average Weekly Ordinary Time Earnings (AWOTE) for full-time adults. As of May 2026, AWOTE was $2,083.70 per week. This is a survey average, not a legal minimum. It shows what typical full-time employees earn in ordinary time, but your actual OTE may be higher or lower depending on your industry and role. The Commonwealth Superannuation Corporation uses AWOTE rates to update salary for super purposes when a salary reduction has occurred.

Why it matters

Understanding OTE helps you check whether your employer is paying the correct super guarantee. If your ordinary hours are clearly defined, overtime should not be included in OTE. If they are not defined, all hours are OTE. Always refer to your award or agreement first – it may require super on additional amounts beyond the legal minimum.

For more detail on which pay floor applies to you, see our Which minimum wage applies guide. You can also browse Rate tables for current award and national minimum rates.

Sources

– List of payments that are ordinary time earnings (Australian Taxation Office)
– Average Weekly Ordinary Time Earnings (Commonwealth Superannuation Corporation)

This article is for orientation only. It is not a pay determination, tax advice, or legal advice. Modern awards and enterprise agreements can set higher rates than the national minimum. Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages.

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