Common pay increase dates for all APS employees

Key details

APS employees currently get headline pay increases at different times throughout the year, depending on the agency they work in. To promote commonality, APS bargaining will see all agencies transition to provide employees consistent headline pay increases from the first full-pay period after 1 March each year.

The first common pay increase date is 14 March 2024. Where APS employees would normally get their next increase after this date, they can get this increase early. Any pay increase for APS employees provided between 1 September 2023 and 14 March 2024 will be deferred until 14 March 2024.

The Commonwealth is offering realignment payments to support employees to transition to the common APS pay increase date. The realignment payment will compensate any APS employee whose pay increase is deferred during the transition to the new common pay date.

Realignment payments for deferred pay increases

An agency will calculate the realignment payments on foregone earnings for any APS employee who has their pay increase deferred as part of the transition to the common pay increase date. The agency will make these payments as close as possible to when APS employees would normally get a pay increase. This will happen regardless of the progress of APS bargaining.

An agency will calculate the value of the realignment payments by how long an APS employee’s pay increase is deferred, and pro-rata it for part-time and casual employees. To make sure the realignment payment is fair and reasonable, it also includes an additional 20% premium on top of any foregone earnings.

To make sure agencies calculate the correct value of an APS employee’s realignment payment, agencies will:

• take a snapshot of their employee’s base salaries and agreed hours (or average hours for casuals), and use this to determine the appropriate value of the realignment payment
• non-ongoing employees will have their payment calculated at the timing of the snapshot, without reference to the period of their non-ongoing engagement.

Eligibility

An agency will calculate the realignment payment for all impacted APS employees on the date they take the snapshot. This date will differ by agency, but you don’t need to work for the agency for a specific period to get the payment. The calculation of these payments will include an APS employee’s Higher Duties Allowance, where relevant, but no other allowances.

An agency won’t pay the realignment payment to APS employees employed in the agency after they make the payment. APS employees on leave at half-pay will receive a pro-rata realignment payment.

After an agency calculates the payment, changes in an APS employee’s employment status or base salary will not impact the payment. This means that APS employees who:

• leave employment won’t need to repay the amount, and
• change their classification or hours of work will not get a recalculated payment.

Technical details

All eligible APS agencies will calculate their realignment payment through a consistent methodology. Agencies may make the payment in slightly different ways depending on their individual payroll requirements.

Realignment payments will be reported on employee payslips and have appropriate tax withholding.

The treatment of the payment for superannuation purposes may also differ by agency and by APS employee’s individual superannuation arrangements.

If an employee’s superannuation salary is determined using the Ordinary Time Earnings methodology, it is likely the realignment payment will attract a superannuation payment consistent with relevant legislation, fund rules, and industrial instrument requirements.

If an employee’s superannuation salary is determined using the Fortnightly Contribution Salary methodology (including those in a defined benefit scheme), it is unlikely the realignment payment will be reflected in an employee’s applicable superannuation salary.

Local HR Teams will be able to answer questions from APS employees about the calculation of these payments and discuss their individual circumstances.

Realignment payments for impacted agencies