The superannuation system needs to be reformed to meet the needs of a growing number of casual and contingent workers, predominately women, according to REST Super’s CEO Damian Hill.

Research done for REST shows that casual and contingent (casual work arranged through apps and web sites) workers are missing out on as much as $147 million a year in superannuation contributions.

That is because their work situation means they are not entitled to super contributions from their employers because only those earning $450 a month or more are entitled to Super Guarantee payments.

A lack of knowledge means that many in this category think they are getting payments they in fact aren’t. And women and young people are disproportionally affected.

The research revealed that women make up 70 per cent of the contingent workforce and 82 per cent of the part- time workforce. Overall 25 per cent of contingent workers were found to be between 18-24 years old and earning $37,000 a year before tax.

Mr Hill told The New Daily that it was time the $450 monthly limit for superannuation payments was decreased. “We call for a discussion on how to decrease that $450 limit.”

Originally the $450 limit was introduced to ease what was then the heavy administrative burden on employers of paying super. But things have changed in that regard.

“Electronic payment reduces the administrative burden of superannuation payments on employers significantly. As the digital economy expands casual and contingent work will become increasingly common,” Mr Hill said.

Today a growing number of people earn over $450 a month from casual and contingent work  from a number of employers and think they are getting super and sickness and disability insurance policies found in super policies.

The research showed that 40 per cent of casual workers and 47 per cent of contingent workers think they are entitled to super guarantee payments from the first dollar they earn.  However they aren’t and the annual loss of benefits could be $147 million, Mr Hill said.

“It’s time this issue was addressed given that the nature of the economy and work has changed and will continue to change.”

“As we shift towards a more contingent workforce, access to income protection insurance is more important than ever, as most of these roles don’t provide paid leave in the event of illness or injury that require an extended period off work,” said Mr Hill.

The research found that 70 per cent of workers expect to boost earnings through casual and contingent work.