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What Does Salary Inclusive of Superannuation Mean? Awards vs National Minimum Wage
Learn what 'salary inclusive of superannuation' means in Australia, how it compares to awards and the national minimum wage, and where it sits on the Salary Index.
The national minimum wage base rate sits at index 48.2, but when superannuation is included, the total package rises to approximately index 54.0. For award rates, the inclusion of superannuation varies by classification.
What Does 'Salary Inclusive of Superannuation' Mean?
In Australia, when you see a job ad quoting a "salary inclusive of superannuation," it means the figure includes the employer's compulsory super guarantee contribution. From 1 July 2026, the super guarantee is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830. So if an employer offers $100,000 inclusive of super, your base salary is roughly $89,286, and the employer adds $10,714 in super. This is different from a "base salary" quote, where super is paid on top.
Understanding this distinction is crucial when comparing job offers or checking where your pay sits against the national line. The Salary Index, which uses full-time adult ordinary-time earnings of $108,352 per year as index 100, is based on gross ordinary-time earnings before super. So a salary inclusive of super will have a higher index than the base-only equivalent.
Awards vs National Minimum Wage: Base Rates and Super
Awards and the national minimum wage set minimum base rates of pay. The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised to $52,255. That gives an index of 48.2. But that's the base. When you add 12% super, the total package becomes $58,525.60 per year, which would be index 54.0. Similarly, the entry-level award floor is $25.74 per hour (base), so inclusive of super it's $28.83 per hour.
Modern awards often set higher minimum rates than the national minimum wage, but they too are base rates. For example, a retail employee under the General Retail Industry Award might have a base rate of $27.50 per hour (hypothetical, not from reference). The super is additional. So when you hear "award wage," it's almost always the base. The pay guides from Fair Work Ombudsman list these base rates.
How to Compare Inclusive Salaries with the Index
If you're offered a salary inclusive of super, you can convert it to a base figure to compare with the index. Divide the inclusive amount by 1.12 (for 12% super). For instance, a total package of $120,000 inclusive gives a base of $107,143, which is index 98.9 (just below the national line). If the same job quoted base only, you'd add super to get the total cost to the employer.
The how the index works page explains that the index is a ratio of your gross annual earnings to the national line, times 100. For inclusive salaries, you need to decide whether you're comparing total remuneration or base. Most industry benchmarks, like those from the Australian Bureau of Statistics, report ordinary-time earnings before super, so the index is best used with base figures.
State and Industry Variations
Your location and industry also affect where your salary sits. For example, the mining industry has an index of 154.7 (base), while retail trade is 75.9. If you're in mining and your base salary is $160,000, that's index 147.7. Inclusive of super, it's $179,200, which would be index 165.4 if you compared total package to the base national line. But the index is designed for base comparisons, so be consistent.
State indexes vary too: New South Wales is 101.2, Victoria 98.0, Western Australia 106.9. A salary inclusive of super in WA might look higher than the same base in NSW, but after backing out super, the base comparison is clearer. Check the states page for more detail.
Tax and Take-Home Pay
When you receive a salary inclusive of super, the super component is not taxed as your income—it goes into your super fund and is taxed at 15% (or 30% for high earners). Your take-home pay is based on the base salary. For 2026–27, resident tax rates (excluding Medicare) are: nil up to $18,200, 15% on $18,201–$45,000, 30% on $45,001–$135,000, 37% on $135,001–$190,000, and 45% above that. Plus a 2% Medicare levy. So a base salary of $80,000 would have a tax of about $16,467 plus Medicare $1,600, leaving $61,933 take-home. The super of $9,600 goes to your fund.
Why It Matters
Knowing whether a salary is quoted inclusive of super helps you avoid confusion. If you're negotiating, ask for the base rate and the super component separately. The topics page has more on salary negotiation. And remember, the national minimum wage and award rates are minimums—many employers pay above them. The index gives you a quick sense of where your pay stands relative to the average Australian worker.
In summary, "salary inclusive of superannuation" means the total package. When using the Salary Index, convert to base for an apples-to-apples comparison. Awards and the national minimum wage are base rates; super is extra. Always check the fine print.
Questions people ask
Is salary inclusive of superannuation better than base salary?
Neither is inherently better; it depends on how you compare offers. A salary inclusive of superannuation gives you the total cost to the employer, while base salary is what you receive before super is added. When comparing jobs, always check whether the quoted figure includes super. For example, a base salary of $80,000 plus 12% super equals a total package of $89,600. If another employer offers $85,000 inclusive of super, the base is about $75,893. The first offer is higher in base and total.
How does superannuation affect the Salary Index?
The Salary Index is based on gross ordinary-time earnings, which do not include superannuation. So if you have a salary inclusive of super, you need to back out the super component to compare with the index. For instance, a total package of $120,000 inclusive of super (12%) means a base salary of about $107,143, which gives an index of 98.9 (just below the national line). The index itself is a tool for comparing base earnings; inclusive figures will always appear higher relative to the index.
Do award rates include superannuation?
No, award rates are minimum base rates of pay. Superannuation is paid on top of the award rate as a separate contribution. For example, the entry-level award floor is $25.74 per hour. With 12% super, the total hourly cost to the employer is $28.83. Some enterprise agreements or individual contracts may quote a 'total remuneration' that includes super, but the award itself only sets the base.