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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 (TR) provides the most complete overall remuneration information as it includes Base Salary and Total Remuneration Package (TRP) 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 2015, the overall median Base Salary increase was 0.1%. The median Base Salary increase at the non-SES classifications was 0.1% and the median Base Salary increase at the SES classifications was 1.4%.

Table 2.1 provides the 2014 and 2015 median Base Salaries. The greatest increase in median Base Salary was at the SES 3 classification with a 3.3% increase. The lowest median movement from 2014 to 2015 was 0.0% shared by five classifications.

The result of lower 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 for their classification.

The median length at level for ongoing APS employees in 2015 was 6.3 years; this figure has steadily increased since 2008, when the median length at level was 3.0 years.

It is standard practice for newly engaged and promoted employees to commence on salaries at or near the bottom of their salary pay range. The increase in engagements in 2015 compared with 2014 is likely to have influenced the average salary at the APS 2, 3, 4 and 5 classifications.

At the SES classifications, the change in the population arising from machinery of government changes is likely to have influenced the median movement.

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: Definitions 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:
Definitions
for notes on interpreting box plots.

Table 2.1: Base Salary by classification
Class. Employees P5 Q1 Median Q3 P95 Average
2014 n 2015 n 2014 $ 2015 $ 2014 $ 2015 $ 2014 $ 2015 $ change % 2014 $ 2015 $ 2014 $ 2015 $ 2014 $ 2015 $ change %
Graduate 1,160 1,159 53,652 53,652 57,965 57,513 60,158 60,158 0.0 63,236 63,236 68,027 69,456 60,343 60,442 0.2
APS 1 918 804 38,015 39,144 43,216 43,216 47,004 47,736 1.6 48,533 48,533 49,697 49,697 45,769 45,953 0.4
APS 2 3,200 3,265 49,321 48,525 53,129 51,308 54,588 54,588 0.0 55,096 55,096 56,435 56,435 53,932 53,533 -0.7
APS 3 15,871 15,493 55,553 55,511 59,933 59,933 61,512 61,512 0.0 62,492 62,492 62,560 62,560 60,801 60,696 -0.2
APS 4 28,323 29,181 63,960 62,493 67,247 66,987 69,239 69,239 0.0 69,239 69,239 70,144 70,144 68,256 68,122 -0.2
APS 5 19,964 19,835 70,108 69,395 72,856 72,856 74,331 74,451 0.2 75,208 75,208 76,407 76,624 74,191 74,256 0.1
APS 6 30,447 30,673 79,759 78,842 85,301 85,301 86,844 86,923 0.1 89,217 89,217 90,276 90,890 86,683 86,869 0.2
EL 1 25,402 24,782 101,361 101,278 106,230 106,301 108,013 108,382 0.3 108,796 108,796 115,778 115,778 107,975 108,160 0.2
EL 2 11,706 11,335 122,892 122,032 130,894 131,524 133,905 133,905 0.0 137,597 138,290 151,097 151,097 135,657 136,322 0.5
SES 1 1,794 1,897 156,000 159,125 173,519 173,519 178,617 181,006 1.3 192,500 195,474 216,901 215,662 183,809 185,092 0.7
SES 2 503 528 201,000 208,711 222,173 223,363 230,000 232,644 1.1 247,460 251,534 272,215 277,897 234,878 238,674 1.6
SES 3 109 113 272,659 275,000 287,350 293,097 302,000 312,000 3.3 327,924 336,448 408,617 380,692 316,131 319,884 1.2
Total 139,397 139,065  

2.2 Total Remuneration Package

Total Remuneration Package (TRP) includes Base Salary plus:

  • agency superannuation contribution;
  • motor vehicle allowance;
  • motor vehicle parking; and
  • any other benefits and supplementary payments.

In essence, TRP covers Base Salary plus benefits. It excludes bonuses and shift and overtime payments. These payments are included in Total Reward (TR).

The overall movement in median TRP across all classifications from 2014 to 2015 was an increase of 0.1%. The non-SES classifications median TRP increased by 0.1%, and the SES classifications median TRP increased by 0.6%.

The SES 3 classification saw the greatest increase in median TRP with a 1.7% increase from 2014. The key contributor to this is the increase in median Base Salary of 3.3%. The second greatest increase in median TRP was 0.9%, at the APS 1 classification.

The lowest median TRP change was at the APS 4 classification, with a 0.1% decrease from 2014 to 2015.

As demonstrated in Table 3.1, Base Salary makes up around 85% of the TR 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.

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:
Definitions
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:
Definitions
for notes on interpreting box plots.

Table 2.2: Total Remuneration Package by classification
Class. Employees P5 Q1 Median Q3 P95 Average
2014 n 2015 n 2014 $ 2015 $ 2014 $ 2015 $ 2014 $ 2015 $ change % 2014 $ 2015 $ 2014 $ 2015 $ 2014 $ 2015 $ change %
Graduate 1,160 1,159 62,084 62,084 66,979 66,813 69,342 69,422 0.1 72,974 72,974 76,388 78,820 69,689 69,906 0.3
APS 1 918 804 43,869 45,172 50,325 50,428 54,858 55,371 0.9 57,393 57,155 59,747 60,007 53,624 53,995 0.7
APS 2 3,200 3,265 56,916 56,196 61,422 59,699 63,581 63,581 0.0 65,249 65,233 67,865 68,268 63,291 62,716 -0.9
APS 3 15,871 15,493 64,159 64,108 69,485 69,876 72,116 72,116 0.0 74,123 74,665 77,603 79,781 71,724 71,906 0.3
APS 4 28,323 29,181 74,086 72,117 78,683 78,804 80,210 80,152 -0.1 82,464 82,741 84,632 84,954 80,290 80,195 -0.1
APS 5 19,964 19,835 81,391 80,361 85,778 85,778 87,427 87,417 0.0 89,633 89,874 92,518 93,654 87,379 87,550 0.2
APS 6 30,447 30,673 92,152 91,060 99,285 99,944 102,246 102,361 0.1 105,472 106,285 109,144 110,230 101,972 102,270 0.3
EL 1 25,402 24,782 117,642 116,875 124,207 124,647 126,976 127,269 0.2 128,634 129,753 138,390 138,823 127,158 127,594 0.3
EL 2 11,706 11,335 142,925 143,006 153,539 154,526 158,026 158,707 0.4 164,940 166,425 182,357 184,348 160,686 161,899 0.8
SES 1 1,794 1,897 207,691 208,308 227,891 225,976 238,223 239,880 0.7 249,580 249,893 270,594 268,400 238,879 238,782 0.0
SES 2 503 528 263,655 263,682 286,804 284,069 299,720 299,878 0.1 313,074 312,235 340,273 344,792 299,414 301,742 0.8
SES 3 109 113 344,405 343,294 367,090 371,612 389,011 395,599 1.7 410,139 412,038 482,431 450,739 394,796 395,842 0.3
Total 139,397 139,065  

2.3 Total Reward

Total Reward (TR) is the sum of the Total Remuneration Package (TRP) plus bonuses. Bonuses include:

  • individual performance bonus;
  • retention bonus;
  • productivity bonus; and
  • whole-of-agency or group bonuses.

Median performance bonuses in 2015 ranged from $725 at the APS 1-4 classifications to $27,493 at the SES 3 classification.

The overall movement in median TR across all classifications from 2014 to 2015 was a decrease of 0.1%. The non-SES classifications median TR decreased by 0.2%, and the SES classifications median TR increased by 0.7%.

The APS 1 classification saw the greatest increase in median TR with an increase of 1.0% from 2014. The SES 1 and SES 3 classifications recorded the second highest increase in median TR with an increase of 0.8%.

The APS 2 classification showed the greatest decrease of median TR, with a decrease of 0.9%, followed by the APS 4 classification with a decrease of 0.5%.

A whole of agency lump sum payment was paid in a large agency in 2014. The change in median movements in the lower classifications may reflect that no such payment was paid in 2015.

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:
Definitions
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:
Definitions
for notes on interpreting box plots.

Table 2.3: Total Reward by classification
Class. Employees P5 Q1 Median Q3 P95 Average
2014 n 2015 n 2014 $ 2015 $ 2014 $ 2015 $ 2014 $ 2015 $ change % 2014 $ 2015 $ 2014 $ 2015 $ 2014 $ 2015 $ change %
Graduate 1,160 1,159 62,084 62,084 66,979 66,813 69,342 69,422 0.1 73,574 72,974 76,388 78,820 69,778 69,917 0.2
APS 1 918 804 43,869 45,172 50,368 50,428 55,059 55,633 1.0 57,427 57,341 60,295 60,011 53,791 54,088 0.6
APS 2 3,200 3,265 56,916 56,196 61,571 59,725 64,906 64,306 -0.9 66,243 65,233 68,012 68,299 63,665 62,895 -1.2
APS 3 15,871 15,493 64,275 64,117 69,510 69,907 72,291 72,199 -0.1 74,428 74,678 78,742 80,839 71,994 72,133 0.2
APS 4 28,323 29,181 74,101 72,117 78,760 78,804 80,760 80,395 -0.5 82,464 82,741 84,711 85,039 80,403 80,265 -0.2
APS 5 19,964 19,835 81,499 80,433 85,916 85,916 87,844 87,547 -0.3 89,759 90,191 93,175 94,480 87,731 87,839 0.1
APS 6 30,447 30,673 92,165 91,149 99,736 100,047 102,655 102,654 0.0 105,472 106,285 109,251 110,643 102,312 102,576 0.3
EL 1 25,402 24,782 117,865 116,963 124,278 124,647 127,690 127,701 0.0 129,258 130,237 139,035 139,906 127,630 128,049 0.3
EL 2 11,706 11,335 143,988 143,678 154,379 155,266 159,105 159,399 0.2 166,337 167,400 186,062 187,881 162,545 163,486 0.6
SES 1 1,794 1,897 210,341 209,568 228,347 226,442 238,931 240,811 0.8 251,567 251,198 273,598 270,580 240,393 239,909 -0.2
SES 2 503 528 265,381 266,150 288,783 285,602 300,197 300,713 0.2 314,260 314,389 347,255 353,669 304,030 305,771 0.6
SES 3 109 113 344,405 343,294 369,202 375,104 393,272 396,453 0.8 412,458 414,942 482,431 450,739 403,621 403,544 0.0
Total 139,397 139,065