As reported in earlier articles, currently most employees must earn more than $450 in a calendar month to be eligible for superannuation contributions from their employer. This rule is being scrapped from 1 July 2022 when there generally will be no minimum earnings to qualify for superannuation entitlements.
The position under the Hospitality and Restaurant Awards
Despite the usual position being a $450 a month minimum earnings threshold for super, the Hospitality and Restaurant Awards currently provide for a more favourable position for employees covered by these awards. Namely, employees only need to earn $350 per month in order to be eligible for superannuation contributions.
The Fair Work Commission has recently had to consider how the Hospitality and Restaurant Awards will operate going forward, given that if the $450 a month minimum earnings threshold is being removed for other employees, there will be confusion as to the position of employees covered by the awards if a reference to a $350 a month minimum earnings threshold remains in the Hospitality and Restaurant Awards.
On 1 June 2022, the Fair Work Commission determined that it would delete the relevant clauses in the Hospitality and Restaurant Awards from 1 July 2022 to bring the awards in line with the position of other industries, i.e. that there will no minimum monthly earnings in order to qualify for superannuation payments from this date.
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The information provided in these blog articles is general in nature and is not intended to substitute for professional/legal advice. If you are unsure about how this information applies to your specific situation we recommend you contact EI Legal for advice.