Public service executive remuneration policy

Context

The Government established the Victorian Independent Remuneration Tribunal (Tribunal) under the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019.

While the Government issues certain policies in relation to its executive workforce, the Tribunal determines the executive remuneration bands for executives employed in VPS bodies and in prescribed public entities.

In making its determinations, the Tribunal is required by legislation to consider a number of matters including the Government’s Wages Policy, the financial position of the state, the remuneration of public service executives in other Australian jurisdictions and comparable positions in the private sector.

The remuneration paid to a public service executive must be within their relevant remuneration band. An executive’s relevant remuneration band is determined based on the outcome of a work value assessment, conducted according to the work value assessment methodology in the Victorian Public Sector Commission (VPSC) classification frameworks.

Employers make decisions as to an individual executive’s remuneration. The Tribunal has issued guidelines to assist employers in placing public service executives within the relevant remuneration bands.

In exceptional circumstances, if an employer is proposing to pay an executive above the maximum rate of the relevant remuneration band, advice from the Tribunal must be obtained and considered. Refer to the Tribunal website for further guidance.

Executive remuneration annual adjustment

The Remuneration Tribunal undertakes annual reviews of the VPS executive remuneration bands and publishes any adjustment to those bands in its annual adjustment Determinations. These are the bands within which VPS executives must be remunerated (unless advice from the Remuneration Tribunal to pay above the bands has been obtained and considered).

The latest VPS (and public entity) executive remuneration bands can be found on the Tribunal website.

The Premier also traditionally announces an annual adjustment guideline rate (guideline rate) to provide a mechanism for adjusting executive remuneration.

For further information please visit the website, Executive and senior office holder annual remuneration changes.

VPS and Public Entity Executive Employment Handbooks are are available on the VPSC website.

Summary of responsibilities

A table demonstrating key bodies and their responsibilities in executive remuneration policy is shown below.

Further information

The Department of Premier and Cabinet manages executive employment policy, including:

• the Premier's guideline rate;
• the PEER Policy;
• matters relating to standard executive contracts, remuneration and employment policy;
• executive vehicle policy; and
• executive superannuation policy.

Queries on these matters can be directed to publicsectorworkforce@dpc.vic.gov.au.

The VPSC hosts:

• the VPS Standard Executive Contract;
• the Standard Contract for Public Entity Executives;
• the VPS Executive Employment Handbook; and
• the Victorian Public Entity Executive Employment Handbook.

For more information, please visit the VPSC executive employment website, or contact executive.employment@vpsc.vic.gov.au.

The Tribunal is responsible for:

• determining remuneration bands for executives employed in prescribed public entities and public service bodies; and
• advising on proposals to pay public sector executives above the remuneration band.

For further information, please visit the Tribunal’s website, or contact enquiries@remunerationtribunal.vic.gov.au.