Overview
This article explains how to configure a Salary Sacrifice (Superannuation) arrangement where an employee elects to sacrifice 100% of their eligible earnings into superannuation, including scenarios where allowances (such as motor vehicle allowances) should also be included in the calculation.
When setting up a salary sacrifice arrangement for superannuation, employers may need to ensure that:
100% of an employee’s eligible earnings are sacrificed to super
Additional earnings such as allowances are included in the salary sacrifice calculation
Incorrect setup may result in allowances being excluded from superannuation contributions or incorrect percentage calculations.
⚠️ Important: Superannuation salary sacrifice pay components must use the system-provided Salary Sacrifice Superannuation Pay Component Sub Type (PCST).
Custom-created superannuation PCST codes are not supported and may result in incorrect calculations or reporting issues.
Step 1. Use the System Salary Sacrifice Superannuation PCST
1.Navigate to Payroll Admin → Payroll Setup → Pay Component Sub Types
2.Select the system-defined Salary Sacrifice Superannuation PCST
⚠️ Important: Do NOT create or use a custom superannuation PCST
2. Configure the Percentage Calculation Basis
If the salary sacrifice should include allowances (e.g. motor vehicle allowance), ensure the correct pay basis is selected.
1.Open the Salary Sacrifice Superannuation PCST
2.Locate the Percent Type field
3.Add Gross Pay as a selection
If Gross Pay is not added:
Hold Ctrl and select Gross Pay
Save the configuration
This ensures the percentage calculation includes both base salary and applicable allowances.
3. Set Up the Employee EPC Record
For the employee’s Salary Sacrifice Superannuation setup:
Open the Employee Pay Component (EPC) record
Select Salary Sacrifice Superannuation
Tick Is Percentage
Choose the appropriate Percent Type (e.g. Gross Pay)
This allows the system to apply the salary sacrifice percentage to the correct earnings base.
Expected Outcome
When configured correctly:
The salary sacrifice percentage is applied to 100% of eligible earnings
Allowances (if included via Gross Pay selection) are correctly factored into the calculation
Superannuation contributions are processed accurately according to employee setup
âś… Notes
Salary sacrifice superannuation must always use system-defined PCST codes
Including allowances in super calculations depends on selecting Gross Pay as the percentage basis
Incorrect PCST or Percent Type configuration may result in under- or over-calculation of super contributions