Superannuation Salary Sacrifice
Salary sacrifice is an arrangement with your employer to forego part of your salary or wages in return for your employer providing benefits of a similar value. If you make voluntary super contributions through a salary sacrifice agreement you should be aware of how your contributions will affect your super balance. You can agree with your employer for your voluntary contribution to be in addition to your employer’s compulsory super contribution.
VMware Default Fund: Dell EMC Australia Superannuation Plan
Superannuation Provider: AMP CustomSuper
The salary sacrificed amounts of superannuation are legislatively classified as additional employer contributions.
- Salary sacrificed superannuation contributions will automatically be paid to the employee’s existing super fund of choice (within 28 days after pay day)
- Employees are eligible to salary sacrifice for additional amounts to the Maximum Concessional Contribution Limits (i.e. employer and employee contributions from all sources). Should a member exceed these limits, the additional tax liability and Medicare levy will be the responsibility of the member. Please contact CA Financial Services for further information
- The concessional contributions cap is $25,000 for all individuals regardless of age
- The salary sacrifice election must effective from a future date and cannot be backdated to apply to salary previously paid
- Notional base salary: The contracted base salary paid to the employee by VMware before any salary sacrifice arrangements and excludes allowances. Base salary is noted on the employee’s VMware employment contract or the most recent salary review letter, whichever is the latter
Salary Sacrifice Super Contributions
VMware will allow permanent employees to salary sacrifice up to 50% of their current package (OTE) without the pre-approval from HR Source [VMware network access required] in one calendar year. However, if a member wishes to salary sacrifice above this limit, permission must be sort from HR Source [VMware network access required].
Altering This Agreement
An employee may vary their salary sacrifice arrangements at any time. To commence or change a superannuation salary sacrifice deduction, employees are to email payroll with the amount of money they would like deducted each month.
Salary Reviews or Pay Increases
Salary reviews will be calculated on the notional base salary amount and any increase will be noted in the notional base salary details for the employee.
Employer Superannuation Contributions
The company Superannuation Guarantee Contribution will continue to be made on the basis of the employee’s notional base salary in accordance with the current legislation governing the Superannuation Guarantee Charge and Company Policy.
An employee’s long service leave and other statutory entitlements upon termination will be based upon the employee’s notional base salary as noted in their most recent Salary Review Letter and in accordance with Company policy.
An adjustment will be made to the employee’s cash salary in respect of the accrued value of the salary sacrifice benefits provided up to the date of termination, where applicable.
During periods of extended unpaid leave, all salary sacrifice arrangements will cease to be provided by VMware Australia Pty Ltd.