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3. Features of key remuneration components

3.1 Comparison of key remuneration components by classification

The comparison of the different components of a total remuneration package provides an understanding of the contribution that each component makes to the whole.

Table 3.1 provides data on the makeup of remuneration paid across all classifications. It provides the proportion that Base Salary, benefits and bonuses contribute to remuneration as a whole.

For all classifications, the largest component of remuneration apart from Base Salary is the employer superannuation contribution.

Across the non-SES classifications, the Base Salary makes up between 84.1% and 86.8% of the remuneration received by employees. The TRP component makes up between 13.2% at the Graduate classification and 15.2% at the EL 2 level: most of which is the employer superannuation contribution.

At the SES levels, the benefits component provides a greater contribution to the whole remuneration package compared to the non-SES classifications. This varies from 22.1% at the SES 3 classification to 24.9% at the SES 1 classification. The benefits component is primarily composed of the employer
superannuation contribution and motor vehicle arrangements.

Bonus payments continue to make up only a minor part of the whole remuneration package. The use of performance bonus arrangements has continued to decline. Bonuses contribute to between 0.2% and 1.1% of all remuneration received in the SES classifications and up to 2.0% for the non-SES classifications.

Further information on the breakdown of Base Salary, TRP, and Total Reward can be found in Section 7: Remuneration Findings by Classification.

Table 3.1: Median Base Salary, TRP and TR by classification
Classification Base salary component of TR TRP component of TR TR component of TR
$ % $ % $ %
Source: 2014 APS Remuneration Report
Graduate 60,158 86.8 9,184 13.2 0 0.0
APS 1 47,004 85.4 7,854 14.3 201 0.4
APS 2 54,588 84.1 8,993 13.9 1,325 2.0
APS 3 61,512 85.1 10,604 14.7 175 0.2
APS 4 69,239 85.7 10,971 13.6 550 0.7
APS 5 74,331 84.6 13,096 14.9 417 0.5
APS 6 86,844 84.6 15,402 15.0 409 0.4
EL 1 108,013 84.6 18,963 14.9 714 0.6
EL 2 133,905 84.2 24,121 15.2 1,079 0.7
SES 1 178,617 74.8 59,607 24.9 708 0.3
SES 2 230,000 76.6 69,720 23.2 477 0.2
SES 3 302,000 76.8 87,011 22.1 4,260 1.1

3.2 Motor vehicle allowances

Motor vehicle cost is the annualised cost of a motor vehicle that an employee is able to use for private use. This includes the provision of a motor vehicle, running costs, insurance, repairs, maintenance and any fringe benefits tax payable. Cash-in-lieu of a vehicle is the total paid to an employee
where they opt for cash instead of a motor vehicle. Table 3.2 combines these allowances by classification.

Consistent with previous years, the use of motor vehicle allowances or, cash in-lieu of motor vehicle allowances, was low in the non-SES classifications. The highest use of motor vehicle allowances at these classifications was at the EL 2 classification with 2.8% of employees receiving a benefit. The
number of employees at other non-SES classifications that received a motor vehicle was very small.

There was a reduction in the proportion of SES employees who received some form of motor vehicle related allowance from 74.5% in 2013 to 72.3% in 2014.

Both the median and average amounts paid for motor vehicle benefits increased for SES 1 and SES 3 classifications. The median increases were $750 for SES Band 1 and $354 for SES Band 3.

Table 3.2: Motor vehicle cost and cash in lieu by classification
Classification Total employees  n Employees with allowance n Proportion who received allowance % P5 $ Q1 $ Median $ Q3 $ P95 $ Average $

Source: 2014 APS Remuneration Report

Note: This allowance includes the annualised total cost of a motor vehicle that an employee was able to use for private use (include provision, running costs, insurance, repairs, maintenance, and any FBT payable) or the total paid to an employee where they opted for cash instead of a motor vehicle
provided for private use.

Graduate 1,160 0 0.0 . . . . . .
APS 1 918 0 0.0 . . . . . .
APS 2 3,200 0 0.0 . . . . . .
APS 3 15,871 0 0.0 . . . . . .
APS 4 28,323 0 0.0 . . . . . .
APS 5 19,964 3 0.0 49 49 153 283 283 162
APS 6 30,447 0 0.0 . . . . . .
EL 1 25,402 7 0.0 580 7,783 11,924 16,036 22,716 12,197
EL 2 11,706 326 2.8 1,933 6,958 22,877 26,000 31,000 17,988
SES 1 1,794 1,312 73.1 16,589 25,000 26,000 27,522 31,000 25,314
SES 2 503 353 70.2 16,378 25,000 27,000 28,000 33,000 26,398
SES 3 109 74 67.9 16,797 26,914 29,000 30,000 35,000 28,194
Total 139,397 2,075 1.5  

3.3 Performance bonus

Performance bonuses may be available to APS employees through an enterprise agreement or other employment instrument, for example a common law contract. The availability, eligibility and amounts vary across agencies. While performance is also recognised through other mechanisms such as salary or incremental
advancement (which is reflected in Base Salary movement) this section reports only on performance bonus payments.

There were 22,894 employees (16.7%) of the non-SES workforce, and 297 (12.3%) of the SES workforce who received a performance bonus in 2014.

The proportion of employees who received performance bonuses varied across the non-SES classification levels from 0.5% at the Graduate level to 26.6% at the EL 2 classification.

Due to the low proportion of use of performance bonuses at the non-SES classifications, the figures at these classifications have been dominated by three agencies which have a high proportion of their workforce at the top of their classification salary ranges. The enterprise agreements covering these
agencies provide for a bonus payment, in lieu of salary advancement, linked to satisfactory performance.

Figure 3.1 shows that the proportion of SES employees that received a performance bonus of the past five years. The proportion of SES employees that received a bonus in 2014 is about a third of the proportion in 2010. The reduction in the use of performance bonuses for SES employees appears to have
levelled off.

The median and performance bonus values increased across all SES classifications between 2013 and 2014, but the average increased only for the SES 2 and SES 3 classifications.

Figure 3.1: SES performance bonus usage, 2010 to 2014

 

Source: 2004–2010 APS Remuneration Surveys, 2011–2014 APS Remuneration Reports

Table 3.3: Performance bonus by classification
Classification Total employees  n Employees with bonus n Proportion who received bonus % P5 $ Q1 $ Median $ Q3 $ P95 $ Average $

Source: 2014 APS Remuneration Report

Note: This allowance captures the sum of performance bonuses actually paid to employees for the calendar year of 2014.

Graduate 1,160 6 0.5 657 700 1,122 1,240 1,470 1,052
APS 1 918 89 9.7 471 725 725 725 725 700
APS 2 3,200 812 25.4 580 725 725 725 725 714
APS 3 15,871 3,034 19.1 564 725 725 1,239 1,240 1,013
APS 4 28,323 1,987 7.0 346 653 725 725 3,219 858
APS 5 19,964 4,233 21.2 725 743 743 1,456 1,502 1,097
APS 6 30,447 4,866 16.0 741 868 868 895 4,346 1,386
EL 1 25,402 4,759 18.7 959 1,084 1,084 2,159 6,015 1,945
EL 2 11,706 3,108 26.6 1,177 1,339 2,000 6,592 16,053 6,226
SES 1 1,794 224 12.5 2,299 7,383 11,000 15,220 26,104 11,579
SES 2 503 62 12.3 9,756 18,683 22,526 29,163 44,151 36,238
SES 3 109 11 10.1 20,027 26,686 32,000 40,501 657,140 87,445
Total 139,397 23,191 16.6  

3.4 Superannuation

The median employer superannuation contribution for the Graduate to EL 2 classifications in 2014 was between 15.4% and 17.1% of the employee's base salary, dependent on the superannuation scheme that individual employees participated in.

APS employee superannuation fund membership has been reported by four categories:

  • The Commonwealth Superannuation Scheme (CSS);
  • The Public Sector Superannuation Scheme (PSS);
  • The Public Sector Superannuation Accumulation Plan (PSSap) and
  • 'Other'.

As the CSS and PSS closed to new members in 1990 and 2005 respectively, there were no APS employees in the CSS from 35–39 years of age and below, and very few under 25 years of age in the PSS.

There were 67,694 APS employees, or 48.6% of the APS workforce, in the PSS and 57,071 employees, or 40.9% of the workforce, in the PSSap. There has been a slight reduction since last year in the proportion of employees in the CSS and PSS with a corresponding increase in proportion of employees in the
PSSap.

Figure 3.2 provides information on the proportional distribution of superannuation scheme membership by classification. As a general trend, the PSSap membership decreases as the classification increases, reflecting this as the default fund in the APS since 2005. Conversely, the proportion of employees
in the CSS are higher at higher classifications, reflecting employees who have been in the service for longer.

Only 4.2% of APS employees were members of the Commonwealth Superannuation Scheme, down from 5.1% in 2013 with approximately 33.8% of them aged 55 years or over. These members represent a significant proportion of the SES workforce: 20.6% at the SES 1 level, 33.8% at the SES 2 level and 37.6% of the
SES 3 level.

A high employer superannuation contribution (compared to base salary) can be the result of several things: a higher salary for superannuation purposes; an employee performing an eligible period of higher duties when their superannuation was calculated; and annualising superannuation paid fortnightly,
based on ordinary time earnings for a fortnight with a large amount of shift work or overtime. Data is shown in Table 3.7.

Table 3.5 'Number of employees by superannuation fund and age group' provides important information for workforce planning. Due to the nature of the scheme, the CSS may provide a disincentive for its members to work beyond 55 years of age in some circumstances.

Figure 3.2: Employer superannuation contributions by classification

 

Source: Table 3.4

Table 3.4: Number of employees by classification and superannuation fund
Classification CSS PSS PSSap Other
n % n % n % n %
Source: 2014 APS Remuneration Report
Graduate . . 4 0.3 1,016 87.6 140 12.1
APS 1 25 2.7 202 22.0 551 60.0 140 15.3
APS 2 89 2.8 1,295 40.5 1,549 48.4 267 8.3
APS 3 305 1.9 5,718 36.0 8,685 54.7 1,163 7.3
APS 4 527 1.9 12,573 44.4 13,649 48.2 1,574 5.6
APS 5 562 2.8 8,703 43.6 9,386 47.0 1,313 6.6
APS 6 1,102 3.6 14,586 47.9 12,715 41.8 2,044 6.7
EL 1 1,408 5.5 15,350 60.4 7,267 28.6 1,377 5.4
EL 2 1,221 10.4 7,806 66.7 2,018 17.2 661 5.7
SES 1 369 20.6 1,174 65.4 172 9.6 79 4.4
SES 2 170 33.8 242 48.1 52 10.3 39 7.8
SES 3 41 37.6 41 37.6 11 10.1 16 14.7
Total 5,819 4.2 67,694 48.6 57,071 40.9 8,813 6.3
Table 3.5: Number of employees by superannuation fund and age group
Classification CSS PSS PSSap Other
Source: 2014 APS Remuneration Report
n % n % n % n %
Under 20 . . . . 95 92.2 8 7.8
20-24 . . 1 0.0 2,724 88.4 356 11.6
25-29 . . 208 1.6 11,469 87.9 1,368 10.5
30-34 . . 3,842 20.9 13,112 71.3 1,429 7.8
35-39 . . 9,515 50.2 8,369 44.1 1,078 5.7
40-44 126 0.6 13,038 62.4 6,749 32.3 982 4.7
45-49 1,165 5.7 13,026 64.2 5,188 25.6 910 4.5
50-54 2,560 11.8 13,656 63.1 4,421 20.4 1,006 4.7
55-59 1,212 8.6 9,236 65.1 2,862 20.2 870 6.1
60 and over 756 8.6 5,172 58.7 2,082 23.6 806 9.1
Total 5,819 4.2 67,694 48.6 57,071 40.9 8,813 6.3
Table 3.6: Employer superannuation contribution as a proportion of Base Salary by classification
Classification Employees P5 Q1 Median Q3 P95 Average
2013 n 2014 n 2013 % 2014 % 2013 % 2014 % 2013 % 2014 % 2013 % 2014 % 2013 % 2014 % 2013 % 2014 %
Source: 2013 and 2014 APS Remuneration Reports
Graduate 1,346 1,160 13.6 13.8 15.0 15.4 15.4 15.4 15.6 15.6 17.2 16.3 15.4 15.4
APS 1 1,164 918 14.4 14.7 15.4 15.4 15.6 15.4 18.0 18.7 21.3 22.9 16.7 17.1
APS 2 3,544 3,200 14.7 15.1 15.4 15.4 16.4 16.3 17.9 18.3 21.0 21.8 16.9 17.2
APS 3 17,548 15,871 14.7 15.1 15.4 15.4 16.0 16.3 18.2 19.2 24.2 25.3 17.4 17.9
APS 4 29,656 28,323 14.9 15.1 15.4 15.4 16.6 16.6 18.1 19.1 20.5 22.0 17.0 17.5
APS 5 21,191 19,964 14.6 15.0 15.4 15.4 16.4 16.5 18.2 19.1 22.5 23.6 17.2 17.6
APS 6 32,468 30,447 14.5 14.8 15.4 15.4 17.0 17.3 18.1 19.1 21.4 22.3 17.1 17.5
EL 1 28,117 25,402 14.6 15.1 15.4 15.4 17.1 17.4 18.5 19.0 21.2 21.9 17.3 17.7
EL 2 13,050 11,706 14.7 15.1 15.6 16.0 16.8 17.2 18.4 19.0 21.6 22.2 17.3 17.7
SES 1 1,939 1,794 14.9 15.3 16.4 17.0 17.8 18.4 19.9 20.0 23.0 23.5 18.2 18.5
SES 2 565 503 14.4 15.3 15.8 16.3 17.8 18.4 20.0 20.3 23.3 24.2 18.2 18.6
SES 3 119 109 11.8 14.9 15.4 15.9 18.2 18.4 20.0 20.5 23.0 23.9 17.7 18.4
Table 3.7: Employer Superannuation Contribution
Classification Employees n P5 $ Q1 $ Median $ Q3 $ P95 $ Average $
Source: 2014 APS Remuneration Report
Graduate 1,160 8,300 8,987 9,145 9,738 10,258 9,260
APS 1 918 5,680 6,934 7,474 8,799 10,876 7,820
APS 2 3,200 7,555 8,209 8,778 10,146 12,008 9,298
APS 3 15,871 8,361 9,372 9,895 11,936 15,657 10,885
APS 4 28,323 9,686 10,624 11,259 13,225 15,133 11,970
APS 5 19,964 10,655 11,447 12,209 14,365 17,456 13,094
APS 6 30,447 12,094 13,311 15,004 16,978 19,790 15,204
EL 1 25,402 15,597 16,738 18,974 20,463 23,898 19,068
EL 2 11,706 19,060 21,454 23,601 25,911 30,788 23,969
SES 1 1,794 26,136 29,946 32,980 37,118 44,256 33,992
SES 2 503 32,380 38,060 42,822 48,867 56,541 43,510
SES 3 109 44,328 50,169 57,155 64,064 72,325 57,464