What are ordinary time earnings?
Ordinary time earnings (OTE) are the gross amount an employee earns for ordinary hours of work, used to calculate superannuation contributions.
Ordinary time earnings (OTE) are the total gross earnings an employee receives for their ordinary hours of work. OTE is the base used to calculate the superannuation guarantee — your employer pays super as a percentage of your OTE. The ATO defines OTE under Superannuation Guarantee Ruling SGR 2009/2.
OTE includes your base salary, casual loading, shift loadings for ordinary hours, commissions, bonuses, and paid leave. It excludes overtime payments, lump sum termination payments, expense reimbursements, and workers' compensation top-up payments.
Key facts
- •OTE is the base for calculating the 12% superannuation guarantee
- •Includes: base salary, casual loading, shift loadings, allowances related to ordinary hours, paid leave, bonuses, and commissions
- •Excludes: overtime, reimbursements, workers' comp payments, and termination payouts (except accrued leave)
- •Defined by ATO Superannuation Guarantee Ruling SGR 2009/2
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Superannuation CalculatorFrequently asked questions
Are bonuses included in OTE?
Generally yes. Performance bonuses, sales commissions, and incentive payments that relate to ordinary hours of work are included in OTE. Only bonuses paid purely at the employer's discretion (with no contractual basis) may be excluded.
Is overtime included in OTE?
No. Payments for hours worked beyond ordinary hours (overtime) are excluded from OTE. However, shift loadings paid for ordinary hours are included.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.