Do increases in superannuation come out of wages?
It’s a common assumption that compulsory superannuation comes out of workers’ wages. But is it true?
With compulsory super set to rise from 9.5 per cent to 12 per cent by July 2025, it’s timely to ask who is going to foot the bill. Employers or employees? And what does this mean for your future salary?
Listen to Brendan Coates, Household Finances Program Director, and Matt Cowgill, Senior Associate discuss their latest working paper No Free Lunch: Higher superannuation means lower wages.
You can read the working paper in discussion here.