The contributions your employer makes to your superannuation account increased on 1 July. They’re now equal to 12% of your salary, a jump of 0.5% from the past financial year.

That is now the minimum amount your employer must pay into your fund on your behalf, this is called the super guarantee. If your super contributions are listed on your payslip, you should see the increase there from the July 2025 pay period.

The superannuation guarantee is legislated and compulsory. We’ve seen legislated 0.5% rises for five consecutive financial years recently, but 12% is where it’s set to settle.

“The 0.5% increase per year for the past five years is going to add up to a substantial increase in the money you have to fund your life after work,” explains smartMonday Head of Advice Matt Davey.

“First, because all those 0.5% increases add up to 2.5%. In addition, the increased amount in your super will achieve greater results over time due to compound returns – where the gains of each year are further built on in following years.”

Using the government’s MoneySmart superannuation calculator you can see how much your super is likely to grow with 12% contributions.

Contributions to super are limited to $30,000 a year at the concessional tax rate of 15%. (This may be higher if you’ve contributed below that limit in recent years under what is known as ‘carry forward arrangements’.)

If you contribute more than the concessional cap then your excess contributions will be added to your tax-assessable income for that year.

“People close to their concessional contributions cap will need to carefully assess the impact of their increased super guarantee payment, particularly if it may push their contributions over that cap,” explains Davey.

If you are currently sacrificing some of your salary to make extra super contributions, you should also consider if the increased employer contributions mean those arrangements should be changed.

Some of the issues raised above can be complex, so consider obtaining qualified financial advice or speaking with a smartMonday smartCoach.