2021 is an important year for organisations. Not only are you piecing together a recovery following a turbulent year, you are navigating more regulation than ever before.
The Superannuation Guarantee rise slated for later this year will impact everyone. Organisations have a difficult choice to make as to how they pay the additional superannuation to employees.
To help you make informed decisions and remain a competitive place to work within your industry, we asked organisations across Australia what they were doing, and collated the findings.
What is happening?
In July 2013, the Australian Federal Government passed legislation to transition the minimum Superannuation Guarantee contributions (SG) to 12% of by 2025.
The next phased increase is scheduled to take place on 1 July 2021, when the SG will move from 9.5% to 10%.
How will this impact your organisation?
The increase will bring different people and cost challenges. Organisations need to decide whether to pay the additional superannuation on top of current salary or reduce employee take-home pay to cover the increase.
On top of that, there are other things to consider, especially given the challenges of 2020. Things like stagnant wage growth, shrinking talent pools with international borders shut, and overall retirement benefit concerns are all factors to consider when making your decision.
Download Mercer’s research on how organisations are approaching the Superannuation Guarantee increase slated for July 2021.