Domestic Workers Miss Superannuation Contributions Due to 30-Hour Rule

Some domestic workers employed in private homes are not receiving employer superannuation contributions despite working full-time hours across multiple families. The law exempts employers from paying superannuation when a domestic worker such as a nanny, cleaner or housekeeper logs fewer than 30 hours a week with that employer.

A nanny in Melbourne who works up to 50 hours a week across two families said she has received no employer contributions for more than 20 years. "I've worked a maximum of 30 hours with one family and 20 hours with another family, so that's where it has greatly affected me because in any other job those are full-time hours," she said.

" The 30-hour threshold was originally introduced to prevent superannuation fund fees from eroding low-balance accounts. Protections on small balances have since been introduced, removing the original rationale.

Analysis from the Super Members Council shows nearly 40,000 domestic workers will be affected during the 2026–27 financial year, with each missing out on about $4,000 a year on average. The lost contributions total nearly $150 million nationwide. The council reported that the gap leaves affected workers with about $130,000 less in superannuation at retirement.

With women retiring with 25 per cent less superannuation than men on average, and 86 per cent of domestic workers being women, the rule widens an existing retirement savings gap. A second nanny said one family deliberately limited her to 29.5 hours a week to avoid the obligation.

She eventually raised her hourly rate to cover her own voluntary contributions after negotiations for employer payments were rejected.