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Values of the remuneration bands from 1 July 2022

The VPS Executive Employment HandbookExternal Link defines total remuneration package (TRP), as the sum of:

  • base salary
  • superannuation contributions
  • employment benefits (i.e. non-salary) specified in the executive’s contract of employment
  • the annual cost to the employer of providing the non-monetary benefits, including any fringe benefits tax payable

From 1 July 2022, the values of the remuneration bands are:

Senior Executive Service (SES)

Classification Minimum TRP ($) per annum Maximum TRP ($) per annum
SES-1 207,116 267,445
SES-2 267,446 384,540
SES-3 384,541 511,862

Administrative Office (AO) Heads

Classification Minimum TRP ($) per annum Maximum TRP ($) per annum
AO Head 1 207,116 267,445
AO Head 2 267,446 384,540
AO Head 3 384,541 511,862

Department Secretaries and the Victorian Public Sector Commissioner

Classification Minimum TRP ($) per annum Maximum TRP ($) per annum
Department Secretary/Victorian Public Sector Commissioner 554,443 747,497

Determination in effect

On 14 May 2020, and in accordance with section 21 of the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019 (Vic)External Link VIRTIPS Act, the Tribunal made the Remuneration bands for executives employed in public service bodies (Victoria) Determination No. 01/2020.

The Determination applies to executives employed in:

  • departments
  • Administrative Offices (AOs)
  • the Victorian Public Sector Commission (VPSC)

It also applies to public service body Heads who are defined in the Public Administration Act 2004 (Vic)External Link as:

  • Secretaries of departments
  • heads of Administrative Offices
  • Commissioner of the VPSC

The Determination set the framework for an executive's remuneration based on their relevant remuneration band.

Employers of executives retain the power to set an individual executive's remuneration within the relevant band. However, employers proposing to pay an executive above the maximum rate of the relevant band must apply for and consider advice from the Tribunal.

To support the making of the Determination, the Tribunal engaged Mercer Consulting (Australia) to undertake a desktop work-value assessment of executives, as well as Secretaries of departments and the VPSC Commissioner. The full report prepared by Mercer is available here:

In accordance with section 22 of the VIRTIPS Act, the Tribunal has made the Remuneration bands for executives employed in public service bodies (Victoria) Annual Adjustment Determination 2022, which adjusts hte values of the remuneratipn bands effective from 1 July 2022.

Consolidated version of the Determinations

For ease of reference, the Tribunal has published the Remuneration bands for executives employed in public service bodies (Victoria) Determination No. 01/2020, which incorporates changes made by the 2021 and 2022 annual adjustments.

A consolidated version of the Determinations is available here:

Original Determination

Below is a copy of the original Determination as made (ie unvaried).

Victorian Public Service Executive Remuneration Guidelines

Effective date 14 May 2020

  • 1.1. In accordance with section 36(6) of the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019 (Vic)External Link , the Victorian Independent Remuneration Tribunal (the Tribunal) has made guidelines for or with respect to the placement of public service body Heads and other executives employed in public service bodies within the remuneration bands set by a Determination.

    1.2. These Guidelines should be read together with the Determination in effect at the time.

  • 2.1 These Guidelines apply to:

    • new executive appointments within Victorian public service (VPS) bodies
    • existing VPS executives where there is a change in the employment contract (for example, arising out of a machinery of government change or where a position is re-structured or re-classified)

    2.2 The Guidelines aim to assist VPS employers in placing public service body Heads and other executives within the VPS executive remuneration bands.

    2.3 Ultimately, these are guidelines and judgement will need to be applied by each VPS employer when weighing up the various factors in determining the appropriate remuneration for the individual executive.

  • The following overarching principles have been drawn from matters considered by the Tribunal in making the Determination:

    3.1 Executive remuneration should be fair and reasonable

    Executives in the VPS should receive fair and reasonable recompense for performing their public duties.

    3.2 Executive remuneration should be competitive

    Remuneration should be set at a competitive level, so as to attract and retain talented people.

    3.3 Executive remunerations arrangements should be robust

    Remuneration decisions should be robust and based on a consideration of all relevant factors as outlined in section 4.

  • Together with the guiding principles, VPS bodies should consider the following factors when setting the remuneration of individual executives within the relevant remuneration band:

    4.1 The work value assessment score for the role under the Victorian Public Sector Commission’s Victorian Public Service Classification Framework (where completed/available) (for further information on the VPS Classification Framework please refer to the VPSC’s websiteExternal Link ).

    • The Classification Framework is designed to enable VPS bodies to classify executive positions using a work value assessment tool, which produces an assessment score for each position. Generally, the higher the score, the more highly the position may be remunerated within the relevant band.

    • It should be noted, however, that work value scores should not be interpreted as equating to a fixed dollar value or increment within a remuneration band.

    4.2 The experience, knowledge and capability of the individual

    • For an executive with no prior or little executive experience, remuneration at the base or in the lower half of the remuneration band may be appropriate.
    • For a relatively experienced executive, remuneration around the middle of the remuneration band may be suitable.
    • For a highly experienced executive, with evidence of high performance, remuneration above the middle of the band may be required to retain or attract the executive and compete effectively in the market.

    4.3 The remuneration relativities of other executives within the organisation

    • Comparable roles within the organisation should attract similar remuneration in order to maintain relativity within a peer group.
    • Particular consideration may be required to achieve gender pay equity and reduce the gender pay gap for comparable executive roles across the organisation.

    4.4 Intra band reporting

    • Where an executive reports to another executive and both are remunerated within the same band, the more senior role in the reporting relationship should receive a higher level of remuneration.
    • An exception may occur for specialist roles, where a higher level of remuneration is offered to attract a candidate with the particular knowledge and capability required of the role, despite the specialist reporting to a more senior executive.

    4.5.The current remuneration of the individual

    Individuals recruited from a comparable role may warrant a higher level of remuneration to secure the candidate.

    4.6 Labour market pressures on the position

    Skills shortages in particular geographic areas or occupational categories, or niche skills required for the role, may require a more competitive remuneration offering.

Reviewed 17 January 2023

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