OTE Salary Meaning: How Ordinary Time Earnings Vary by State and Industry

What is OTE salary meaning?

OTE stands for ordinary time earnings. It's the amount you pay an employee for their ordinary hours of work – the hours they're regularly rostered or contracted to work, not overtime. OTE is defined in the Superannuation Guarantee (Administration) Act 1992 and is used to calculate the minimum super guarantee contribution an employer must pay.

From 1 July 2026, the super guarantee rate is 12% and is calculated on qualifying earnings, which includes all OTE plus certain other payments (like salary sacrificed amounts that would have been OTE). The ATO provides a comprehensive list of payments that count as OTE, including ordinary hours, casual loading, shift penalties, piece rates, commissions, and some allowances. Overtime payments are generally not OTE if the employee's ordinary hours are clearly identified in an award or agreement.

OTE and the Salary Index

The Salary Index uses full-time adult ordinary time earnings as its benchmark – index 100 equals $2,083.70 per week, annualised to $108,352 (ABS Average Weekly Earnings, May 2026). This means if you earn $2,083.70 per week from your ordinary hours, you're exactly on the national line. If you earn more, your index is above 100; if less, below 100.

For example, the national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week – that's index 48.2. A casual worker on the minimum wage with 25% loading earns $33.05 per hour, but that loading is still OTE, so their weekly OTE for a 38-hour week would be about $1,255.90 (index 60.3).

State differences in OTE

OTE varies significantly across Australian states and territories. Using the Salary Index state benchmarks:

• ACT: index 109.9 (annualised $119,090) – highest due to concentration of public sector and professional jobs.
• WA: index 106.9 ($115,825) – boosted by mining and resources.
• NSW: index 101.2 ($109,658) – slightly above national average.
• VIC: index 98.0 ($106,137) – just below.
• QLD: index 97.9 ($106,064) – similar to Victoria.
• NT: index 95.2 ($103,173).
• SA: index 94.6 ($102,450).
• TAS: index 88.6 ($96,008) – lowest, reflecting a different industry mix.

These indices are averages. A retail worker in Tasmania will likely earn less OTE than a mining engineer in Western Australia, but the state index gives a sense of the overall earnings environment. You can explore more on our states page.

Industry differences in OTE

Industry is a major driver of OTE differences. The Salary Index industry benchmarks show:

• Mining: index 154.7 – the highest, reflecting high wages for skilled trades and professionals.
• Professional, scientific and technical services: index 114.7.
• Education and training: index 105.5.
• Health care and social assistance: index 97.8 – close to national average.
• Retail trade: index 75.9 – well below average, partly due to high casual and part-time employment.
• Accommodation and food services: index 72.5 – the lowest, with many award-level roles.

If you work in retail, your OTE might be around $1,581 per week (index 75.9), while a mining worker's OTE could be $3,224 per week (index 154.7). That's a big gap, but it reflects different skill requirements, market conditions, and bargaining power. See our industries page for more.

Practical example: comparing OTE across states and industries

Let's say you're a full-time adult working in health care in Tasmania. The state index for Tasmania is 88.6 and health care index is 97.8. A rough combined estimate might be around 93–95, meaning OTE of roughly $1,938–$1,979 per week. That's below the national line but above the Tasmanian average because health care pays better than many other Tasmanian industries.

Now consider a professional in the ACT (state index 109.9, professional services index 114.7). Combined, you might be looking at index 112–115, or OTE of $2,334–$2,396 per week. That's well above the national line.

These are illustrative – your actual OTE depends on your award, enterprise agreement, or individual contract. The Salary Index helps you see where you sit relative to the national average. You can calculate your own index using how the index works.

OTE and super guarantee

Since 1 July 2026, super guarantee is 12% of qualifying earnings. For most employees, qualifying earnings are the same as OTE plus certain other payments (like salary sacrificed amounts that would have been OTE). The ATO explains that overtime is not OTE if ordinary hours are clearly defined, but it is still part of salary and wages for super guarantee charge purposes if you miss a payment. The maximum super contribution base for 2026–27 is $270,830 – earnings above that don't attract compulsory super.

If you're an employer, you need to correctly identify OTE to calculate super. The ATO's list of payments that are ordinary time earnings is a good starting point. For employees, understanding OTE helps you check whether your super is being calculated correctly.

How to use the Salary Index

The Salary Index is a simple tool: take your annual gross ordinary-time earnings (excluding overtime), divide by $108,352, and multiply by 100. That's your index number. Compare it to state and industry benchmarks to see how your pay stacks up. For more, see our pay guides and topics pages.

Remember: OTE is just one part of your total remuneration. Overtime, bonuses, and other payments can boost your take-home pay, but they don't affect your super as much. And your award or agreement might require super on additional amounts – always check with Fair Work Ombudsman or your union.

Key takeaways

• OTE salary meaning: earnings for ordinary hours of work, used for super guarantee.
• National benchmark: $2,083.70/week (index 100).
• State variation: from 88.6 (Tasmania) to 109.9 (ACT).
• Industry variation: from 72.5 (accommodation) to 154.7 (mining).
• Super guarantee: 12% on qualifying earnings (includes OTE) from July 2026.

Use the Salary Index to understand where your OTE sits – it's a clearer picture than just a dollar figure.