The IEU’s MSU on understanding payday super

From 1 July 2026, the way employers pay superannuation will change. Under the new rules, employers will be required to pay super at the same time as wages.

Key changes under Payday Super:

• Super is paid on payday, not quarterly.

• Super contributions must reach the employee’s super fund within 7 business days of payday.

For new employees, the first contribution can be made within 20 business days of their first payday, compared with 7 business days for existing employees.

The IEU has often fought to regain thousands of dollars on behalf of members who have not been paid the correct amount of super by employers. We continue to urge members to check their pay slips to avoid being underpaid. Workers will now be able to more easily detect missing super payments through their super fund accounts in real time.

Australian Unions welcomed the changes, saying, ‘payday super will directly improve the retirement outcomes of workers by making it harder for employers to get away with super theft’.

Unpaid super costs 2.8 million Australians – or one in four workers – a total of $5.1 billion a year, particularly impacting younger workers, those in insecure work, women, and migrant workers. The average affected worker loses about $1,800 in super per year, or around $30,000 by retirement, according to the Super Members Council.

Payday super is expected to give Australians greater oversight of their retirement savings and help workers benefit more fully from compound interest.

If your employer doesn’t pay super when they should – contact your union!