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2. Key remuneration concepts

The key remuneration components reported in this section are Base Salary, Total Remuneration Package (Base Salary plus benefits), and Total Reward (Total Remuneration Package plus bonuses). To gain a complete understanding of APS remuneration, all elements of the key remuneration components need to
be considered. The Total Reward provides the most complete overall remuneration information as it is made up of Base Salary and Total Remuneration Packages, as component parts.

2.1 Base Salary

The term Base Salary describes the full-time annualised salary paid to an employee. It includes salary sacrifice amounts and pre-tax employee superannuation contributions made through salary sacrifice arrangements. It excludes bonuses and other benefits.

In 2014, the median Base Salary increase at all APS classifications was 0.1%. The median Base Salary movement at the non-SES classifications was 0.1% and the median Base Salary movement at the SES classifications was 0.2%.

Table 2.1 provides 2013 and 2014 Base Salary movement. The greatest increase in median Base Salary was at the APS 1 classification with a 3.8% increase. The lowest median movement from 2013 to 2014 was 0.0% shared by seven classifications.

The result of low employee mobility over the last few years is that a large proportion of APS employees are remaining at the same classification in the same agency. When employees remain at the same classification for long periods, they are likely to have advanced through the salary scale and reached
the top of the scale for their classification.

Figure 2.1: Median Base Salary by classification

 

Source: Table 2.1

Figure 2.2: Base Salary range by classification: Graduate to EL 1

 

Source: Table 2.1

Note: Refer to Section 7 (remuneration findings by classification) for the minimum and maximum values for each classification.

Note: Refer to Appendix A.2 for notes on interpreting box plots.

Figure 2.3: Base Salary range by classification: EL and SES

Source: Table 2.1

Note: Refer to Section 7 (remuneration findings by classification) for the minimum and maximum values for each classification.

Note: Refer to Appendix A.2 for notes on interpreting box plots.

Table 2.1: Base salary by classification
Classification Employees P5 Q1 Median Q3 P95 Average
2013 n 2014 n 2013 $ 2014 $ 2013 $ 2014 $ 2013 $ 2014 $ change % 2013 $ 2014 $ 2013 $ 2014 $ 2013 $ 2014 $ change %
Source: 2013 and 2014 APS Remuneration Reports
Graduate 1,346 1,160 53,652 53,652 57,513 57,965 59,407 60,158 1.3 63,236 63,236 64,765 68,027 59,824 60,343 0.9
APS 1 1,164 918 36,886 38,015 42,334 43,216 45,263 47,004 3.8 48,533 48,533 49,697 49,697 45,066 45,769 1.6
APS 2 3,544 3,200 49,009 49,321 52,291 53,129 54,588 54,588 0.0 55,096 55,096 56,435 56,435 53,752 53,932 0.3
APS 3 17,548 15,871 55,251 55,553 59,318 59,933 61,512 61,512 0.0 62,492 62,492 62,560 62,560 60,492 60,801 0.5
APS 4 29,656 28,323 63,058 63,960 66,977 67,247 69,038 69,239 0.3 69,239 69,239 70,144 70,144 67,995 68,256 0.4
APS 5 21,191 19,964 69,185 70,108 72,806 72,856 74,331 74,331 0.0 75,208 75,208 76,407 76,407 73,885 74,191 0.4
APS 6 32,468 30,447 78,054 79,759 84,318 85,301 86,844 86,844 0.0 88,867 89,217 89,400 90,276 85,954 86,683 0.8
EL 1 28,117 25,402 99,769 101,361 105,362 106,230 108,013 108,013 0.0 108,796 108,796 115,655 115,778 107,410 107,975 0.5
EL 2 13,050 11,706 120,325 122,892 129,878 130,894 133,777 133,905 0.1 137,188 137,597 151,097 151,097 135,236 135,657 0.3
SES 1 1,939 1,794 155,035 156,000 171,420 173,519 178,330 178,617 0.2 191,220 192,500 211,383 216,901 181,604 183,809 1.2
SES 2 565 503 201,000 201,000 221,300 222,173 229,949 230,000 0.0 243,375 247,460 267,920 272,215 233,307 234,878 0.7
SES 3 119 109 266,855 272,659 287,350 287,350 300,000 302,000 0.7 323,787 327,924 389,949 408,617 310,606 316,131 1.8
Total 150,707 139,397  

2.2 Total Remuneration Package

Total Remuneration Package (TRP) includes Base Salary plus:

  • agency superannuation contribution;
  • motor vehicle cost /Executive Vehicle Scheme or cash in lieu of motor vehicle;
  • motor vehicle parking; and
  • any other benefits and supplementary payments.

In essence, TRP covers Base Salary plus benefits. It excludes bonuses, as defined in Total Reward (see definitions in Appendix A.2), shift and overtime payments.

The average movement in median TRP across all classifications from 2013 to 2014 was 0.6%.

The non-SES classifications median TRP increased by 0.6%, and SES classifications median TRP increased by 1.3%.

The APS 1 classification saw the greatest increase in median TRP with a 2.8% increase from 2013. The key contributor is the increase in median Base Salary of 3.8%. The second greatest increase was 2.5%, recorded at the SES 3 classification.

The lowest median TRP change was recorded at the APS 2 classification; with 0.0% change from 2013 to 2014.

As demonstrated in Table 3.1, Base Salary makes up around 85% of the Total Reward received by employees at the non-SES classifications. The key benefit received by non-SES employees in these classifications is the employer superannuation contribution which is primarily calculated on base salary. Normally
the main contributor to TRP movement is Base Salary movement.

The median TRP (see Table 2.2) figures at the SES classifications are more sensitive to minor variations due to the smaller sample size of SES employees. In 2014, there were increases in the agency superannuation contribution for members in the CSS and PSS defined benefits schemes. These are more likely
to affect the median at the SES classifications, as a higher proportion of SES are in those schemes. Increases in car allowances and changes to car parking arrangements, also affected the SES median. This is because most SES employees receive at least one of these allowances.

Figure 2.4: Median Total Remuneration Package by classification

 

Source: Table 2.2

Figure 2.5: Total Remuneration Package range by classification: Graduate to EL 1

 

Source: Table 2.2

Note: Refer to Section 7 (remuneration findings by classification) for the minimum and maximum values for each classification.

Note: Refer to Appendix A.2 for notes on interpreting box plots.

Figure 2.6: Total Remuneration Package range by classification: EL and SES

 

Source: Table 2.2

Note: Refer to Section 7 (remuneration findings by classification) for the minimum and maximum values for each classification.

Note: Refer to Appendix A.2 for notes on interpreting box plots.

Table 2.2: Total Remuneration Package by classification
Classification Employees P5 Q1 Median Q3 P95 Average
2013 n 2014 n 2013 $ 2014 $ 2013 $ 2014 $ 2013 $ 2014 $ change % 2013 $ 2014 $ 2013 $ 2014 $ 2013 $ 2014 $ change %
Source: 2013 and 2014 APS Remuneration Reports
Graduate 1,346 1,160 61,914 62,084 66,370 66,979 68,859 69,342 0.7 72,974 72,974 74,653 76,388 69,075 69,689 0.9
APS 1 1,164 918 43,057 43,869 48,940 50,325 53,349 54,858 2.8 56,099 57,393 58,810 59,747 52,613 53,624 1.9
APS 2 3,544 3,200 56,556 56,916 60,826 61,422 63,580 63,581 0.0 65,110 65,249 67,461 67,865 62,891 63,291 0.6
APS 3 17,548 15,871 63,859 64,159 68,953 69,485 71,928 72,116 0.3 73,586 74,123 76,908 77,603 71,057 71,724 0.9
APS 4 29,656 28,323 72,929 74,086 77,478 78,683 79,902 80,210 0.4 81,771 82,464 83,519 84,632 79,574 80,290 0.9
APS 5 21,191 19,964 79,878 81,391 84,648 85,778 86,821 87,427 0.7 88,821 89,633 91,872 92,518 86,666 87,379 0.8
APS 6 32,468 30,447 90,499 92,152 97,904 99,285 101,426 102,246 0.8 104,895 105,472 108,061 109,144 100,824 101,972 1.1
EL 1 28,117 25,402 115,265 117,642 123,026 124,207 126,019 126,976 0.8 127,785 128,634 137,685 138,390 126,252 127,158 0.7
EL 2 13,050 11,706 140,094 142,925 152,176 153,539 157,033 158,026 0.6 164,322 164,940 182,560 182,357 159,954 160,686 0.5
SES 1 1,939 1,794 204,982 207,691 224,393 227,891 235,706 238,223 1.1 246,891 249,580 264,378 270,594 235,968 238,879 1.2
SES 2 565 503 258,529 263,655 281,490 286,804 294,940 299,720 1.6 310,356 313,074 337,475 340,273 296,345 299,414 1.0
SES 3 119 109 340,330 344,405 361,082 367,090 379,486 389,011 2.5 401,289 410,139 482,827 482,431 387,012 394,796 2.0
Total 150,707 139,397  

Total Remuneration Package movements by agency

Table 2.3 provides information on the median movement of the Total Remuneration Package (TRP) at each classification by agency. Agency TRP is used rather than Base Salary or Total Reward, as it covers the two most significant elements of APS remuneration: Base Salary and the employer superannuation
contribution.

For a calculation to be made, an agency must have employees substantively at a classification level in both 2013 and 2014. As a result, the number of agencies for each classification will vary.

Table 2.3 shows the agency TRP median movement from 2013 to 2014 tended to be in the range of 0 and 2%. This is lower than the 2012 to 2013 agency TRP median movement, which was in the '2 and less than 4%' range.

The reduction between the two year results is likely to be influenced by a reduction in employee mobility and fewer general wage increases. Through a slowing of employee mobility, a higher proportion of employees have reached the top of their salary scale. As a result, fewer agency median movements
are being affected by salary advancement within a salary scale. When employee mobility rates start to increase, this trend may shift. In addition, many APS employees did not receive a general pay increase in the 2014 calendar year.

Table 2.3: Remuneration movements (percent change) of median TRP from 2013 to 2014 by agency
Classification Less than 0 % n 0 and <2 % n 2 and <4 % n 4 and <6 % n 6 and <8 % n 8 and <10 % n 10 % and over n

Source: 2013 and 2014 APS Remuneration Reports

Note: 'n' is the number of agencies.

Graduate 13 14 2 . 1 1 4
APS 1 10 17 3 1 1 1 2
APS 2 11 29 12 2 2 . .
APS 3 12 43 19 5 6 . .
APS 4 12 58 22 3 2 . .
APS 5 13 69 15 4 3 . .
APS 6 21 59 14 6 2 3 1
EL 1 26 62 12 4 . 2 1
EL 2 36 50 10 6 1 1 2
SES 1 28 28 17 10 1 2 4
SES 2 15 24 10 4 3 . 1
SES 3 5 11 7 5 . 1 .

2.3 Total Reward

Total Reward is the sum of the Total Remuneration Package plus bonuses. Bonuses include individual performance, retention and productivity bonuses as well as whole-of-agency or group bonuses. Median performance bonuses in 2014 ranged from $725 at the APS 1-4 classifications to $32,000 at the SES 3
classification.

The overall movement in median Total Reward across all classifications from 2013 to 2014 was 0.3%.

From 2013 to 2014, the non-SES median Total Reward increased by 0.3%, and the SES median Total Reward increased by 1.0%.

Consistent with TRP, the APS 1 classification saw the greatest increase in median Total Reward with an increase of 3.1% from 2013. The SES 3 classification recorded the second highest increase in median change in Total Reward with an increase of 2.7%. .

Both the APS 3 and APS 4 classifications showed a reduction of 0.2% and 0.3% respectively. This was mostly caused through the cessation of performance bonus payments for employees at the top of their salary scale in three agencies.

Figure 2.7: Median Total Reward by classification

 

Source: Table 2.4

Figure 2.8: Total Reward range by classification: Graduate to EL 1

 

Source: Table 2.4

Note: Refer to Section 7 (remuneration findings by classification) for the minimum and maximum values for each classification.

Note: Refer to Appendix A.2 for notes on interpreting box plots.

Figure 2.9: Total Reward range by classification: EL and SES

 

Source: Table 2.4

Note: Refer to Section 7 (remuneration findings by classification) for the minimum and maximum values for each classification.

Note: Refer to Appendix A.2 for notes on interpreting box plots.

Table 2.4: Total Reward by classification
Classification Employees P5 Q1 Median Q3 P95 Average
2013 n 2014 n 2013 $ 2014 $ 2013 $ 2014 $ 2013 $ 2014 $ change % 2013 $ 2014 $ 2013 $ 2014 $ 2013 $ 2014 $ change %
Source: 2013 and 2014 APS Remuneration Reports
Graduate 1,346 1,160 61,914 62,084 66,370 66,979 68,859 69,342 0.7 72,974 73,574 75,343 76,388 69,131 69,778 0.9
APS 1 1,164 918 43,057 43,869 48,940 50,368 53,428 55,059 3.1 56,863 57,427 59,718 60,295 52,940 53,791 1.6
APS 2 3,544 3,200 56,611 56,916 61,124 61,571 64,635 64,906 0.4 65,921 66,243 68,211 68,012 63,531 63,665 0.2
APS 3 17,548 15,871 63,940 64,275 69,060 69,510 72,460 72,291 -0.2 74,386 74,428 78,088 78,742 71,590 71,994 0.6
APS 4 29,656 28,323 73,059 74,101 77,978 78,760 81,018 80,760 -0.3 82,921 82,464 84,382 84,711 80,242 80,403 0.2
APS 5 21,191 19,964 79,942 81,499 85,001 85,916 87,395 87,844 0.5 89,629 89,759 92,679 93,175 87,218 87,731 0.6
APS 6 32,468 30,447 90,789 92,165 98,180 99,736 101,849 102,655 0.8 105,815 105,472 108,927 109,251 101,481 102,312 0.8
EL 1 28,117 25,402 115,539 117,865 123,421 124,278 127,069 127,690 0.5 128,985 129,258 138,965 139,035 127,090 127,630 0.4
EL 2 13,050 11,706 140,481 143,988 153,177 154,379 158,539 159,105 0.4 166,695 166,337 186,831 186,062 162,028 162,545 0.3
SES 1 1,939 1,794 207,333 210,341 225,727 228,347 236,633 238,931 1.0 249,661 251,567 267,722 273,598 237,596 240,393 1.2
SES 2 565 503 263,088 265,381 284,188 288,783 297,353 300,197 1.0 312,254 314,260 338,831 347,255 300,658 304,030 1.1
SES 3 119 109 341,058 344,405 364,452 369,202 382,817 393,272 2.7 405,891 412,458 482,827 482,431 394,294 403,621 2.4
Total 150,707 139,397