Post: Is super really that important?

Is super really that important?

In the fast-paced world of the modern gig economy, where flexibility and autonomy are prized, the importance of superannuation, commonly known as “super,” can sometimes be overlooked. Yet, for on-demand shift workers, sole traders, and locum pharmacists, understanding the significance of super is vital for establishing financial stability both in the present and for the future.


But what exactly is super, and why does it matter? Superannuation serves as a long-term savings plan designed to provide financial support during retirement. Typically, it involves mandatory contributions made by employers on behalf of their employees, calculated as a percentage of their earnings. For sole traders and on-demand shift workers, the responsibility often falls on their shoulders to manage their super contributions.


Now, let’s get into the specifics. Understanding the rates of super contributions is crucial. Currently, in Australia, the standard rate of superannuation guarantee (SG) contributions stands at 10% of an employee’s ordinary time earnings. However, it’s worth noting that this rate can vary based on specific circumstances or agreements.


For locum pharmacists and on-demand shift workers, navigating the complexities of super can be challenging. One crucial aspect to grasp is the distinction between super inclusive and super exclusive rates. Super inclusive involves including super contributions as part of the overall pay rate, whereas super exclusive entails paying super on top of the base rate. At Locumate, your rate of pay is displayed excluding super, providing clarity on your take-home pay.


Now, let’s discuss why super matters, particularly for those in the gig economy. As an on-demand shift worker or locum pharmacist, you essentially act as your own boss, responsible for managing your finances and securing your future. Contributing to super ensures that you’re building a nest egg for retirement, safeguarding your financial well-being down the line.


Thankfully, Locumate has streamlined this process, enabling automatic super contributions through the app. This allows you to enjoy the benefits of super similar to a permanent employee while maintaining the flexibility of an on-demand employer.


In conclusion, super isn’t just another financial obligation; it’s an investment in your future self. For on-demand shift workers, sole traders, and locum pharmacists, understanding the nuances of super contributions is essential. By prioritising super, you’re setting the stage for a secure and prosperous retirement, ensuring that your hard work today pays dividends tomorrow.