A new report by funds Industry Super Australia and Cbus is prompting people to rethink their superannuation after finding one in three workers are being cheated.
The research, in conjunction with the Australian Taxation Office and the Australian Bureau of Statistics, finds some employers are profiting up to $3.6 billion a year.
They do so by dodging compulsory superannuation payments.
Industry Super Australia chief executive David Whiteley says it is disturbing that workers are losing an average of $1,500 a year.
"Where people are deliberately being underpaid or not being paid their super at all is clearly unscrupulous behaviour. When you consider the implications of people not having enough super when they retire, meaning either they need to work longer or be more reliant on the age pension or have a lower quality retirement, then, I think, quite clearly, this is an injustice."
Under the superannuation guarantee, employers are required to contribute 9.5 per cent to an employee's super account.
Mr Whitely says workers under the age of 30 are more likely to miss out on that contribution.
"Well, younger people - that is, those between 20 to 24 - are twice as likely to be vulnerable to being underpaid their super or not being paid their super at all, particularly those working in hospitality, cleaning or construction. So it's absolutely critical for anyone of any age to try and make sure they're being paid their super. But for younger people, perhaps even more so, because, of course, that $1,500, if not paid over two or three years, could end up being tens of thousands of dollars when they retire."
But Mr Whitely says it is not restricted to one age group or profession.
He says, considering the scale of the problem, it is quite clear hundreds of thousands, if not millions, of people are unaware whether they are receiving their proper amount.
"The key concern here is the vast majority of employees do not know that they are either being underpaid or not being paid their super at all. This is something that is affecting nearly 2.5 million Australians. On average, they're losing $1,500 per year as a result of this. That totals up to $3.6 billion, conservatively. The challenge is that people don't know that they're being underpaid or not being paid at all. So, before we try and find solutions, the first thing we need to do is increase awareness of the problem."
He says employees are not the only ones facing the repercussions of employers acting illegally.
"Well, of course, where the employees are being short-changed their super, it's not just the worker that's worse off. It also means that those businesses and those employers that do the right thing are competing on an unlevel playing field. So once again, the government has to sort this out. The government has got to ensure all businesses are doing the right things by their workers, but also ensure that there's a competitive and level playing field for all Australian business."
Mr Whiteley says all workers have the right to trust their employers are paying them the right wage and super.
He says the government should put steps in place to ensure it.
"Well, there's going to be a parliamentary inquiry that will be held in coming weeks and months. In terms of what should occur, well, I think it's quite clear. People should be paid their super into their super account (at) the same time their wages are paid into their bank account - that is, every fortnight or every month. That is how a modern superannuation system should work."
He says people can approach their employers or contact their super funds and seek to reconcile the difference in what super should have been paid if they have concerns.
People can also ask their super funds to help them recover their money or go to the tax office.
