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

The Workplace Bargaining Policy 2018 allows for remuneration increases to be negotiated up to an average of 2.0% per annum (pa). A 2.0% pa wage increase will be worth different amounts to different people.  However, as a simple guide we have used the median^[1] base salary from the 2016 APS Remuneration Report.

Table 1: Annual and fortnightly values of a 2% increase across classifications

*Figures in the table are before tax

What is a 6.0% 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 2.0% pa wage increase for three years for an APS 5 is:

Table 2: 6% increase before tax for an APS 5 over a three year agreement

*Year 2 and 3 have a compounding effect

** The final salary for the APS 5 would be $79,008

Based on the figure provided in Table 3, a 2.0% pa wage increase for three years for an EL 1 is:

Table 3: 6.0% increase before tax for an EL 1 over a three year agreement

*Year 2 and 3 have a compounding effect
** The final salary for the EL 1 would be $115,455

What else does a remuneration increase affect?

Depending on your workplace arrangement, 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.