Knowledge
Construction payroll and payday super in Employment Hero.
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What changed
How does payday super work for builders?
Review the Employment Hero earning categories against your award or EBA, including all-purpose allowances and any minimum weekly contribution. Confirm payment responsibilities and reconciliation with your payroll team.
Timing
Contributions must be received by the fund within 7 business days of payday. Not sent, received.
Frequency
Every pay run. For a weekly construction payroll that's 52 remittances a year, not four.
Rate
12% of ordinary time earnings, and in construction OTE includes all-purpose allowances.
Consequences
Late contributions attract the payday super charge, calculated on the shortfall plus interest, and it isn't deductible.
Cash flow
The quarterly float is gone. On 45-day progress claim terms you fund roughly six pay runs of super before the claim lands.
Reconciliation
Errors surface weekly instead of quarterly, which is better, as long as something is checking OTE correctly every run.
Payday super questions
When did payday super start?
1 July 2026. From that date, super must reach the employee's fund within 7 business days of each payday.
Does super have to be paid on allowances?
On ordinary time earnings, yes, and construction all-purpose allowances form part of OTE. Excluding them understates super on every single run.
What about overtime?
Overtime is generally not OTE, but many construction agreements define ordinary hours in ways that change the answer. Check the applicable instrument and the Employment Hero earning category settings rather than assuming every allowance has the same treatment.
How do builders manage the cash flow hit?
Shorten claim cycles, price super properly into labour rates, and get costed labour visible weekly so the funding gap is a known number rather than a surprise. Our calculator gives you the number.
Reviewed August 2026. General information, not tax or financial advice.