Casual, gig workers need super focus

ABOUT one in five Australians are casual workers and this number is likely to swell as school leavers take up casual jobs over the holiday period.

Casual work can earn a higher hourly rate than permanent jobs, but that’s about where the perks end.

The big downside is the potential to be shortchanged on super.

Employers aren’t obliged to make super contributions if you earn less than $450 a month. And for casual workers, who may at times earn less than this, it’s important to take action to avoid a financially lean retirement.

If you’re juggling several jobs, it can be worth pushing for more hours with one particular employer. That’s because employer-paid super contributions are based on 9.5 per cent of your total ordinary time earnings – not just the amount above the $450 threshold.

For instance, if you work two jobs and earn $450 a month from each employer, you’ll receive a monthly

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Adding to your super could have the government give you $500 in co-contributions.

wage of $900 but no employer-paid super.

However, if you can work more hours with Employer A so that you’re earning, say, $600 a month, while earning $300 a month from Employer B, your total income won’t change but Employer A will be required to pay $57 into your super fund each month.

Casual workers aren’t the only people facing the risk of low super savings.

An estimated 100,000 Australians work in the “gig” economy, using webbased platforms such as Uber to pick up work where they can. On top of this, about 4.1 million Australians do some sort of freelance work.

If that sounds like you, it’s important to choose your own fund rather than relying on an employer’s default option. This makes it easier to stay connected with your super throughout your working life.

It’s also worth looking at ways to grow your super. I realise many casual workers earn a modest income, but establishing a savings routine and making regular voluntary contributions to your super can pay off.

As an added incentive, if you earn less than $36,813 in the current financial year, adding to super from your own pocket could have the federal government chipping in up to $500 through the super co-contributions scheme.

Check out the superannuation calculator on the MoneySmart website to see the difference personal contributions could make to your retirement nest egg.