How leave affects your benefit (Accumulation)
Here is a brief summary of how your super normally operates:
Your employer contributes a percentage of your eligible pay. The percentage used depends on your employment arrangements; the law provides a minimum 9.5% (increasing to 12% by 1 July 2022).
Most employer payments you receive are eligible for super contribution calculations. However, some of the common excluded payments are overtime, payments in lieu of leave and payments on termination (e.g. redundancy payments, payments in lieu of notice and payments for unused leave).
1. Paid leave
As you receive an employer contribution based on your pay, employer contributions are not affected by leave on full pay.
However, if leave is taken on reduced pay, your employer contributions could be effected – for example, if you take long service leave on half pay, your super contributions would also be halved.
If you are making personal contributions from your pay on a regular basis, you may also choose to change the amount while you are on reduced pay – simply complete the Change of Contributions form (available from our website) and give it to your pay office.
2. Unpaid leave
As you receive an employer contribution based on your actual earnings, no employer contributions are paid when you are not receiving any salary.
If you start working with another employer while on unpaid leave, your new employer can contribute to your AvSuper account.
Personal contributions can also be made to AvSuper either via another employer or by lump sum payments via cheque or direct deposit to our bank account.
3. Insurance cover
AvSuper death and disability insurance cover continues for up to 24 months while you are on leave without pay (including for parental leave). If cover is required beyond this point, you must get advance approval from our insurer.
Therefore, it is important to advise AvSuper when you are applying for extended leave without pay, or when unplanned absences extend beyond twenty-four months.
Email: email@example.com | Local call: 1300 128 751 | www.avsuper.com.au