Difference between wages and Ordinary Time Earnings (OTE)

1. OTE is what an employee earns while working their ordinary hours as is specified in their employment agreement, or if not specified, the regular or customary hours worked by the employee.
2. When calculating the minimum superannuation guarantee contribution an employer must use an employee's OTE. This ensures employees are treated similarly for superannuation guarantee purposes.
3. What an employee earns in wages and salary is not necessarily the same as OTE. Wages and salary can include items outside the ordinary hours of work.
4. Listed below are some payments that may be included as OTE and/or wages and salary:
   

   Payment Received	Ordinary Time Earnings	Wages and Salary
   Over-Time (more than stipulated hours)	Not included	Included
   Earned under stipulated hours	Included	Included
   No ordinary hours stipulated	Included	Included
   Reimbursement of expenses	Not Included	Not Included
   Christmas Bonus	Included	Included
   Annual Leave	Included	Included

5. For example, an employee under a contract is required to work a minimum number of hours per week but is allowed to work additional shifts. As there is no distinct pattern of how many hours are worked per week and no penalty rates for over-time, all wages received will also be OTE.
6. However, if an employee is contracted to work 38 hours but works a further 6 hours of overtime for a higher rate, the 38 hours will be considered as wages and OTE but the extra 6 hours will only be considered wages.
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