Remuneration - the monetary value
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 base salary from the 2016 APS Remuneration Report.
Classification |
Base Salary Median $ |
2.0% increase (annual) $ |
2.0% increase (fortnight) $ |
---|---|---|---|
Graduate |
62,493 |
1,250 |
47.92 |
APS 1 |
47,567 |
951 |
36.46 |
APS 2 |
54,588 |
1,092 |
41.87 |
APS 3 |
61,512 |
1,230 |
47.16 |
APS 4 |
69,239 |
1,385 |
53.10 |
APS 5 |
74,451 |
1,489 |
57.09 |
APS 6 |
87,263 |
1,745 |
66.90 |
EL 1 |
108,796 |
2,176 |
83.42 |
EL 2 |
135,583 |
2,712 |
103.97 |
*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:
WAGE INCREASE |
YEAR 1 |
YEAR 2* |
YEAR 3* |
TOTAL |
---|---|---|---|---|
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 |
*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:
Wage increase |
Year 1 |
Year 2* |
Year 3* |
Total |
---|---|---|---|---|
2% on commencement |
$2,176 |
$2,176 |
$2,176 |
$6,528 |
2% 12 months from commencement |
|
$2,219 |
$2,219 |
$4,438 |
2% 24 months from commencement |
|
|
$2,264 |
$2,264 |
|
Total received over three years** |
$13,230 |
*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.