Remuneration – the monetary value

Last updated: 30 Nov 2016

This page is: current

Bargaining policy Q&A

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What is a remuneration increase worth to me in the first year?

The Bargaining Policy allows for remuneration increases to be negotiated up to an average of 2% per annum (pa). A 2% pa wage increase will be worth different amounts to different people. However, as a simple guide we have used the median1 base salary from the 2015 APS Remuneration Report.

Table 1: Annual and fortnightly values of a 2% increase across classifications
Classification Base Salary Median*
$
2% increase (annual)*
$
2% increase (fortnight)*
$

*Figures in the table are before tax

Graduate 60,158 1,203 46.13
APS 1 47,736 955 36.60
APS 2 54,588 1,092 41.86
APS 3 61,512 1,230 47.17
APS 4 69,239 1,385 53.09
APS 5 74,458 1,489 57.09
APS 6 86,923 1,738 66.65
EL 1 108,382 2,168 83.10
EL 2 133,905 2,678 102.67

What is a 6% remuneration increase worth over a three year agreement?

There is an accumulating effect with subsequent wage increases.  Based on the figures provided in Table 1, a 2% pa wage increase for three years for an APS 5 would give them the following new money:

Table 2: 6% increase before tax for an APS 5 over a three year agreement
Wage increase Year 1 Year 2* Year 3* Total
*Year 2 and 3 have a compounding effect
** The final salary for the APS 5 would be $79,015 
2% on commencement $1,489 $1,489 $1,489 $4,467
2% 12 months from commencement   $1,519 $1,519 $3,038
2% 24 months from commencement    $1,549 $1,549
   Total received over three years**  $9,054

What else does a remuneration increase affect?

Depending on your workplace agreement, remuneration increases also increase salary-related allowances such as fire warden, first aid and harassment contact officer allowances. In most circumstances, salary-related allowances will count for superannuation purposes.
A change in base salary has the greatest flow-on accumulative effect on superannuation contributions.


1 The median is the midpoint of all values. It is the point where 50% of values are above and 50% of values are below.