What constitutes Ordinary Times Earnings for Superannuation
| Payments to an employee in relation to … | Salary or wages? |
OTE? |
| Awards and agreements | ||
| Overtime hours – award stipulates ordinary hours to be worked and employee works additional hours for which they are paid overtime rates | Yes | No |
| Overtime hours – agreement prevailing over award | Yes | No |
| Agreement supplanting award removes distinction between ordinary hours and other hours | Yes | Yes |
| No ordinary hours of work stipulated | Yes | Yes |
| Casual employee – shift-loadings – overtime payments |
Yes Yes |
Yes No |
| Casual employee whose hours are paid at overtime rates due to a ‘bandwidth’ clause | Yes | No |
| Piece-rates – no ordinary hours of work stipulated | Yes | Yes |
| Overtime component of earnings based on ‘hourly driving rate’ formula stipulated in award | Yes | No |
| Allowances | ||
| Allowance by way of unconditional extra payment | Yes | Yes |
| Expense allowance expected to be fully expended | No | No |
| Danger allowance | Yes | Yes |
| Retention allowance | Yes | Yes |
| Hourly on-call allowance in relation to ordinary hours of work for doctors | Yes | Yes |
| Payment of expenses | ||
| Reimbursement | No | No |
| Petty cash | No | No |
| Reimbursement of travel costs | No | No |
| Payments for unfair dismissal | No | No |
| Workers’ compensation – returned to work – not working |
Yes No |
Yes No |
| Leave payments | ||
| Annual leave, sick leave or long service leave | Yes | Yes |
| Parental leave – maternity, paternity and adoption leave | No* | No |
| Ancillary leave – eg jury duty, defence forces reserves leave | No* | No |
| Termination payments | ||
| Termination payments – in lieu of notice – for unused annual leave, sick leave or long service leave |
Yes Yes |
Yes No |
| Bonuses | ||
| Performance bonus | Yes | Yes |
| Bonus labelled as ex gratia but in respect of ordinary hours of work | Yes | Yes |
| Christmas bonus | Yes | Yes |
| Bonus in respect of overtime only | Yes | No |
Source- Australian Taxation Office
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