A superannuation industry group says almost 30 per cent of eligible workers in the Hunter are not receiving the correct superannuation payments, costing them tens of thousands of dollars at retirement.
Industry Super Australia, which represents the 12 industry superannuation funds, says almost 74,000 Hunter workers missed out on $139 million in employer contributions in 2018-19.
The organisation is calling on the federal government to change super laws so that contributions are paid with wages. Existing laws allow employers to pay their superannuation guarantee contributions every quarter.
ISA says the laws leave younger, lower-paid workers employed by small businesses particularly vulnerable to underpayment.
"By not mandating employers pay super with wages, politicians are effectively standing in the way of millions of workers getting money they've earned and undermining their future economic security," ISA chief executive Bernie Dean said.
The ISA says its analysis of 2018-19 tax file data shows 73,950 workers in the federal electorates of Hunter, Newcastle, Shortland and Paterson were shortchanged on their super, losing on $1879 in a year. The missing contributions could cost workers up to $60,000 at retirement.
Most Australian workers over the age of 18 are entitled to super payments from their employer.
The government removed the $450-a-week income threshold for employer contributions at the start of July.
Workers under 18 who work more than 30 hours a week are also entitled to super payments.
The ISA analysis shows 18,650 people in the Newcastle electorate were underpaid $1995 in 2018-19, amounting to $37 million in missing contributions. In Shortland, 31 per cent of eligible workers missed out on an average $2017 in super. In Paterson and Hunter, 29 per cent missed out on an average $1871 and $1633 respectively.
The figures relate to those eligible for the super guarantee and exclude those in defined benefits schemes, contractors, the self-employed and unemployed.
ISA said most large and medium businesses paid super with wages or monthly, but smaller businesses were more likely to make less frequent payments.
Across Australia, blue-collar workers and retail and hospitality staff were most likely to be underpaid.
One in two workers who earned less than $25,000 a year had been underpaid super and about one in three earning between $25,000 to $50,000 had been underpaid.
"While most employers do the right thing, some are exploiting an outdated rule that allows them to pay super quarterly, often despite what is written on the payslip," the ISA said.
"Without alignment of super and wages, workers lose track of payments and only discover they've been underpaid when it is too late.
"Because super can be paid quarterly some small business owners also succumb to the temptation of using their employees' super contributions for cashflow, which also leads to underpayments."
ISA said the ubiquity of automated payroll systems meant even the smallest employers could pay super with wages.
An Australian National Audit Office report in May found the Australian Tax Office recovered less than 15 per cent of unpaid super, an amount the ISA described as "dismal".
ISA also called on the government to add super to the fair entitlements guarantee, the government fund that pays missing wages after a company goes into liquidation.
"With super going up, and thousands of lower-paid workers finally eligible to receive it, it's even more important for the government to make sure workers get what they are owed," Mr Dean said.
"There's a growing number of organisations calling on the government to change the law to make all employers pay super to their employees when they pay wages."
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