23Rate of contributions

23 Rate of contributions

S. 23(1) amended by No. 9657 s. 7(a).

(1) Subject to this section, the rate of contribution to the Fund by a contributor shall be three and one-half per centum of his salary when it does not exceed the minimum wage together with a sum equal to 0⋅05 per centum for each one per centum by which the weekly instalment of his salary exceeds the minimum wage.

S. 23(1A) inserted by No. 9657 s. 7(b).

(1A) A reference in subsection (1) to the salary of a contributor is a reference to—

(a) where the contributor was an employee on 1 March preceding the date on which he is liable to pay contributions—the salary payable to him as at that preceding 1 March; or

(b) where the contributor was not an employee on the preceding 1 March mentioned in paragraph (a)—the salary payable to him as at the date on which he became or becomes an employee.

S. 23(2) amended by No. 81/1988 s. 19.

(2) Subject to section 24, a contributor shall not be required to contribute at a rate exceeding five per centum of his salary to the Fund pursuant to subsection (1).

S. 23(2A) inserted by No. 40/2004 s. 23.

(2A) An eligible salary sacrifice contributor may by notice in writing to his or her employer elect to make his or her member contributions by way of salary sacrifice at the rate calculated to the nearest highest 0⋅1% in accordance with the following formula—

M is the applicable member contribution rate in accordance with subsection (1) without salary sacrifice;

R is the tax rate for the financial year on taxable contributions to the Fund under the Commonwealth Income Tax Assessment Act 1936.

S. 23(2B) inserted by No. 40/2004 s. 23.

(2B) An election under subsection (2A)—

(a) can only be made if there is in force an agreement between the employer and the member under which the employer can make the member contributions required by this Act by way of salary sacrifice;

(b) is subject to the terms and conditions specified in the agreement referred to in paragraph (a);

(c) can only be made in respect of the whole of the member contributions;

(d) can not be made in respect of any contributions made by a member in addition to the member contributions required under subsection (1).

S. 23(2C) inserted by No. 40/2004 s. 23.

(2C) Member contributions made in accordance with the rate determined under subsection (2A) are for the purposes of this Act (other than sections 74CA to 74CC) to be taken to be—

(a) the member contributions required to be paid under this Act; and