Does Salary Include Super? How to Read Job Ads and Compare Offers

Does Salary Include Super? How to Read Job Ads and Compare Offers

When you see a salary figure in an Australian job ad, the first question should be: does that number include superannuation? It is a common point of confusion, and getting it wrong can make one offer look better than another. This guide explains how to read job ads, convert figures, and compare offers using the Salary Index.

The Short Answer

Most Australian employers quote salary as base pay, excluding the 12% Super Guarantee (from 1 July 2026). So a job advertised at $100,000 means you receive $100,000 in your bank account over the year (before tax), and your employer pays an extra $12,000 into your super fund. However, some ads, especially for executive roles or total remuneration packages, quote a figure that includes super. They might say "$112,000 package" or "$100,000 including super". The key is to look for the words "plus super" (base) or "including super" (total).

Why It Matters for Comparing Offers

Imagine you have two job offers: one at $105,000 plus super, and another at $115,000 including super. Which is better? The first has a base of $105,000 (total package $117,600). The second has a base of about $102,678 ($115,000 ÷ 1.12). So the first offer actually has a higher base salary, even though the second number looks bigger. To compare fairly, always convert to base salary.

How the Salary Index Helps

The Salary Index uses gross ordinary-time earnings before super. The national line is 100, which equals $108,352 per year (based on ABS Average Weekly Earnings, May 2026). So if you have a base salary of $80,000, your index is 73.8 ($80,000 ÷ $108,352 × 100). If you mistakenly compare a total package of $90,000 including super (base $80,357), you might think you are at index 83.1, but actually you are lower. Always use base salary when checking the industries or states benchmarks.

Examples from the Reference

• National minimum wage: $26.44/hr, $52,255 annualised, index 48.2. That is base pay. Super is extra.
• Casual loading example: $33.05/hr (base plus 25% loading). Still base before super.
• Award minima rose 4.75% from 1 July 2026. Those are base rates.
• State indexes: NSW 101.2 ($109,658), VIC 98 ($106,137), etc. All are gross ordinary-time earnings excluding super.

Tax and Take-Home Considerations

Your take-home pay depends on base salary, not the total package. Using 2026–27 resident tax rates (with tax-free threshold and 2% Medicare levy):

• $80,000 base: tax about $16,467, Medicare $1,600, take-home $61,933.
• $100,000 base: tax about $24,467, Medicare $2,000, take-home $73,533. Super is not taxed in your hands (it goes to your fund, taxed at 15% on contributions). So when comparing offers, focus on base salary for your pocket, and super for your retirement.

What If the Ad Is Unclear?

If a job ad does not specify, assume it is base salary. But always ask the employer or recruiter. The Fair Work Ombudsman advises that salary should be clearly stated. You can also check relevant pay guides for award rates, which are always base rates.

Common Traps

• "Total remuneration" often includes super, but may also include other benefits like car allowance or health insurance. Ask for a breakdown.
• Some ads quote an hourly rate. That is base rate; super is on top.
• Contractors may quote a rate including GST and super. Be careful.

Using the Index to Negotiate

Once you know the base salary, you can see where it sits on the index. For example, if you are offered $90,000 base, that is index 83.1, below the national average. If the industry average for your field is 114.7 (Professional, Scientific and Technical), you might negotiate higher. The topics page has more on negotiation.

Summary

• Does salary include super? Usually no, but always check the wording.
• Convert all offers to base salary before comparing.
• Use the Salary Index on base salary to see where you stand.
• Super is extra for your future, not your take-home.

By understanding this, you can read job ads with confidence and compare offers fairly.