Part 5 - Remuneration

5.1 Payment of Salary

1. All employees shall be paid fortnightly and salary will be paid by electronic funds transfer into a financial institution account of the employee's choice, unless otherwise agreed with the Secretary.
2. The fortnightly salary will be ascertained by applying the following formula:

   Fortnightly salary = Annual salary multiplied by 12 and divided by 313.

5.2 Performance Management

5.2.1 Application of PMS

1. Treasury and its employees agree that the Performance Management System (PMS) will be applied to all Treasury employees subject to this Agreement, except as provided for in clause 5.2.3.

5.2.2 Principles

1. The principles of the PMS will provide a basis for:
   1. determining base pay;
   2. rewarding good work performance;
   3. providing mechanisms for feedback between employees and managers;
   4. addressing under-performance; and
   5. developing employees in their current roles.

5.2.3 Under-performance Provisions not to Apply in Certain Circumstances

1. The provisions of the PMS for management of under-performance do not apply to employees on probation or to non-ongoing employees.

5.3 Application of Pay Rates

5.3.1 Rate of Pay following Commencement of this Agreement

1. Salary rates will be as set out in Schedule A to this Agreement. A 4 per cent salary increase will apply from the date this Agreement comes into operation and a 2.5 per cent salary increase will apply from 1 July 2012 and 1 July 2013.
2. The columns in Schedule A show:
   1. the salary rates that applied under the Treasury Pay Model before the commencement of this Agreement;
   2. the rates that will apply with effect from the date on which this Agreement comes into operation, and
   3. the rates that will apply from 1 July 2012 and 1 July 2013.

5.3.2 Salary and Classification Structure

1. For the purposes of determining salary, this Agreement will provide for the following:
   1. Base pay is the salary point in Schedule A that is applicable to an employee's nominal classification and pay point.
   2. An employee promoted within Treasury will have base pay at the lowest pay point of the relevant classification, unless determined otherwise by the Secretary or under the terms of the PMS.
   3. Where an employee remains on a pay point as described in clause 5.3.8, that interim pay point will be regarded as base pay.
2. For the purposes of determining classification, this Agreement will provide for the following:
   1. Treasury's APS classifications below Executive Levels 1 and 2 are broadbanded as follows:
      1. Treasury Broadband 1 - APS 1, APS 2, APS 3, APS 4; and
      2. Treasury Broadband 2 - APS 5, APS 6.
3. Movement within the broadbands will be determined through Treasury's PMS or merit selection exercise.
4. Movement from Broadband 1 to Broadband 2, or Broadband 2 to Executive Level 1 may occur only following a merit selection process.

5.3.3 Salary Movement

1. With the exception of merit selection or as a result of sanctions following a breach of the APS Code of Conduct or redeployment in accordance with clause 8.10 of this Agreement (reduction in classification due to being excess to requirements), movements between base rates of salary shall be determined under the terms of the PMS or by a decision of the Remuneration Committee in accordance with the Remuneration Committee System guidelines.
2. Salary recommendations resulting from performance appraisals will be effective from the first pay period commencing in the month following completion of each appraisal cycle.
3. Appraisals under the PMS will occur twice per calendar year.

5.3.4 Salary for Superannuation, Severance and Termination Purposes

1. The salary levels applying under this Agreement which are specified in Schedule A, shall be the salary level for superannuation, severance and termination payment purposes from the date on which they take effect as base pay.
2. Nothing in this subclause displaces superannuation legislation as it applies to employees who have a higher salary recognised for superannuation purposes.

5.3.5 Temporary Reassignment of Duties

1. A Treasury employee may be temporarily assigned duties, at his/her substantive level or at a higher classification or at a higher level within a broadband. Prior to any assignment, managers will consult with the employee. Managers will take account of an employee's normal hours of work and will recognise that employees may not be in a position to perform these duties due to personal circumstances.
2. An employee temporarily assigned duties at a higher classification for a period of four (4) weeks or more, will be paid for that period at a rate equal to the salary he/she would receive if promoted or advanced to the level. If the employee's performance appraisal is conducted against the work level of the higher level or classification, then the employee may be paid according to the outcome of the performance appraisal under the PMS.
3. For periods of less than four (4) weeks, employees will undertake the temporary assignment at a higher level, at the request of the manager, without additional payment.
4. The additional payment for temporary assignment at a higher level is treated as pay for the purposes of determining other allowances based on pay.
5. An employee who is temporarily assigned for a period of four (4) weeks or more at a classification that attracts different conditions of service, will receive the conditions of service of the temporary classification, subject to any limitations advised by the relevant manager to the employee.
6. An employee who is receiving additional payment for temporary assignment at a higher level and is granted paid leave, or who observes a public holiday, will continue to receive the additional payment during that absence.
7. Where it is anticipated that an employee may be temporarily assigned at a higher classification level for three (3) months or more, the relevant manager should determine whether the opportunity should be made available to others and if so, the opportunity should be advertised for temporary filling.
8. Treasury and its employees agree that, wherever practicable, temporary assignment of duties for long periods should be avoided.

5.3.6 Temporary Assignment of Duties at SES Level

1. Where an employee covered by this Agreement is temporarily assigned duties under clause 5.3.5 at a level in the Senior Executive Service (SES), the employee's rate of payment will be determined by the Secretary, taking account of the SES Pay Model.

5.3.7 New Employees to Treasury

1. The Secretary may determine that a new employee commencing in Treasury may have an initial interim salary at a point between two pay points within the relevant classification, as determined in Schedule A. Progression to the next highest pay point within the relevant classification will be determined under the terms of the PMS or by the Remuneration Committee.
2. If, following salary increases under this agreement, a lower pay point as determined in Schedule A exceeds the interim salary point, then the employee will receive salary at the relevant pay point.
3. If an employee moves to Treasury from another APS Agency at which the employee had a salary higher than the highest pay point relating to the employee's classification in Treasury, then the Secretary may determine that the employee may be paid at that higher salary as an interim salary. That interim salary will not be subject to any increases under this Agreement. If, following increases under this Agreement, the highest pay point of the employee's classification becomes higher than the interim salary, the employee may move to the highest pay point of the relevant classification under the provisions for salary movement as determined under the terms of the PMS or by the Remuneration Committee.

5.3.8 Cadets

1. Employees on cadetships will be paid at a rate of 57 per cent of the lower pay point prescribed in Schedule A for APS 1 employees, during periods of full-time study, unless the Secretary determines otherwise.
2. During periods of employment, Cadets will be paid at the lower point of the full rate of an APS 1 employee, unless the Secretary determines otherwise.

5.3.9 Salary on Reduction

1. Treasury and its employees recognise that there are circumstances in which an employee may be assigned duties at a classification lower than the employee's previous classification. Examples of such circumstances include the outcome of an underperformance process, a sanction under section 15 of the Public Service Act 1999, redeployment under clause 8.3 of this agreement, or at the request of the employee.
2. The employee's salary on reduction in the lower classification will be determined by the employee's General Manager, taking account of the employee's most recent performance appraisal.

5.4 Flexible Remuneration Packaging

1. All ongoing Treasury employees will have access to flexible remuneration packaging, in line with Government policies and the relevant Treasury guidelines.

5.5 Supported Salary

1. Employees who are unable to perform duties to the competence level required because of a disability and who meet the criteria for receipt ofa disability support pension may be paid according to the percentage of the relevant pay rate that corresponds to their assessed capacity to perform the work.
2. Rates as determined under this subclause will be determined in consultation with Centrelink and accredited rehabilitation providers as required.

Next: Part 6 - Allowances and Reimbursements
Previous: Part 4 - Conditions of Engagement
Return to: Home