Which caps apply to mandatory and voluntary employer contributions?
Both mandatory and voluntary employer contributions count towards an employee’s concessional contributions cap. Mandatory employer contributions are the employer contributions you are required to make under: • an industrial award or agreement • super guarantee legislation. The mandatory employer contribution for an employee under super guarantee is 9% of their ordinary time earnings. There is also a limit to the amount you have to contribute under super guarantee legislation per quarter – this is known as the maximum super contribution base.
Related Questions
- Are employer contributions to an employees voluntary retirement plan, such as a 401(k), 403(b), or an IRA, allowable from grant funds?
- When can a Pag-IBIG member registered under the Mandatory Coverage (Pag-IBIG 1), withdraw his/her contributions?
- Is it mandatory for the employer to make contributions for employees?
