One in three younger workers are missing out on their super entitlements
Almost one in three workers in their twenties are missing out on their full super entitlements, underscoring industry calls to push through payday super changes without delay.
One in three workers under 20 are not being paid their full superannuation entitlements.
Progress on unpaid super has been slow, with the number of employees missing out on their legal entitlements holding steady based on new research from the Super Members Council.
Roughly 2.8 million workers missed out on some of their entitlements in 2021/22, the same as in the prior 12 months, the analysis of Australian Taxation Office data showed.
Affecting nearly one in four workers – particularly younger people, women in low-paid industries, and newly arrived workers – the “systemic” problem leaves individuals with less at retirement and can exacerbate existing inequalities.
Paying super at the same time as wages and salaries – rather than every quarter, as rules dictate at the moment – has been touted as a potential solution.
When paid at the same time as wages, employees are thought to have a better chance of noticing and resolving any incorrectly paid or missing super.
The federal government has committed to such a change from mid-2026 yet with a legislative logjam in the senate, the chief executive officer Misha Schubert said the “clock was ticking”.
“Paying super on payday will modernise the super system and should hugely reduce underpayments,” she said.
Consultation on the reforms has wrapped up but legislation has not yet been introduced to parliament.
A spokesperson for Assistant Treasurer Stephen Jones said pay day super was part of a broader agenda to bolster the system.
“The government has a significant policy agenda to strengthen the superannuation system so that all Australians can retire with dignity,” the spokesperson said.
