# Is Employer Required to contribute Superannuation on Free Shares given by the company



## newbienz (Oct 14, 2016)

Hi there

My employer proposes to give me tax free shares of the company on 12% of my base salary as bonus

The shares will be issued at an weighted average price of the month in which they are issued (Generally in November)

3% of the shares will be released to me in the subsequent year in the month of September every year.

So over a period of 4 years the entire shares will be released to me
If I leave the company before the 4 years are up, the shares which are not released will be forfeited

This is a continuous process which will be followed every year

My base salary is $100,000 (Excl Superannuation)
Value Shares issued to me @ 12% of base salary including Taxes paid by the company on the value of the shares $20,000

I wanted to know if i the employer should pay super annuation of 9.5% on $100,000 or $120,000

Also should I get this issue clarified in my employment contract ?

Thanks for advising


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