Key findings for 2023

• The weighted[1] median Base Salary increase across the APS was 1.8%. This reflects a weighted median increase of 1.7% for non-Senior Executive Service (SES) employees and 2.5% for SES employees. 
• The weighted median Total Reward increase was 1.7% for non-SES employees and 0.8% for SES employees.
• The difference in overall average remuneration between genders was 4.5%, decreasing from 5.2% in 2022 and 7.3% in 2019. On a classification by classification basis there were only small differences between male and female average Base Salaries. Most differences were less than 1%.[2]
• On a classification by classification basis there is a small or no gender pay gap. This suggests that the overall APS gender pay gap is not due to unequal pay for comparable work, but rather the distribution of females and males across the classification structure. Refer to data table 18 for a breakdown of female and male median base salary by classification. 
• 25.7% of employees belonged to a non-Commonwealth superannuation fund increasing from 21.6% in 2022. Non-Commonwealth superannuation fund membership surpassed the number of employees who are members of the Public Sector Superannuation Scheme.

Non-SES Base Salary increases

• Remuneration movements are affected by a number of factors such as general wage increases, increment progression through salary scales, promotions, separations, engagements and transfers between agencies.
• During the coverage period of this report, workplace arrangements operated under both the Public Sector Interim Workplace Arrangements 2022 (Interim Arrangements) which took effect on 1 September 2022 and concluded on 31 August 2023 and the Australian Government Public Sector Workplace Relations Policy 2023 (the Policy) which commenced on 28 March 2023. 
• The 3% wage increase provided for under the Interim Arrangements continued to be rolled out to APS employees in 2023.
• Consistent with the Policy, service wide bargaining for all APS agencies commenced on 30 March 2023 and concluded at the end of November 2023 with the release of a final pay offer and Statement of Common Conditions.
• Between 1 September and 31 December 2023, employees in 35 APS agencies received a lump sum realignment payment of between 0.99% and 2.56% of base salary to compensate for scheduled pay increases due before the new common pay increase date of 14 March 2024. All other components of the service wide pay offer were paid in 2024 following a successful vote for new enterprise agreements.
• From 2022 to 2023 the number of ongoing non-SES engagements and promotions increased by 41% and 12% respectively. Newly engaged and promoted employees tend to commence on salaries at or near the bottom of their salary scale. This change to employee distribution across salary scales is a likely driver of the lower weighted non-SES median Base Salary increase, relative to wage increases in 2023.

SES Base Salary increases

• A number of factors contributed to the headline SES Base Salary increase, most notably the continuing trend to repackage motor vehicle related allowances in Base Salaries. Consequently, the proportion of SES employees paid a motor vehicle related allowance decreased from 27.1% in 2022 to 18.9% in 2023. SES Total Remuneration Package and Total Reward increases were more modest than SES Base Salary increases.
• SES employees are employed under individual arrangements negotiated directly with their agency. The ability for SES employees to negotiate individual remuneration arrangements, or be offered higher levels of remuneration or a different remuneration package, is likely to be a further driver of the 2.5% SES median Base Salary increase. 
• SES Base Salary movement since 2019 has generally been higher than non-SES movement. The year 2020 was an exception due to the suspension of SES wage increases (until June 2021) in response to the COVID-19 Pandemic.

APS Gender Pay Gap

• There continues to be a gender pay gap, driven primarily by the different representation of males and females across classifications. 
• The decreasing gender pay gap figure across the APS is consistent with an increasing proportion of women at APS 6 and above, concurrent with a decreasing proportion of women at APS 5 and below. This change in proportions increases the average female salary, influencing the decline in the gender pay gap figure.
• Table 18 shows the differences between male and female median Base Salaries. For 5 of the 12 classifications the difference in median Base Salaries between men and women was within a range of +/-0.5%. A negative percentage value indicates that females in this classification received a higher median Base Salary. There are now 4 classifications in which women are paid more than men in 2023, compared to 3 classifications in 2022.

Employment Instruments

• A primary employment instrument is a comprehensive arrangement used to set the majority of the terms and conditions for an employee. Employees within the APS have their employment terms and conditions set by one of the following primary employment instruments:
  • Enterprise Agreements
  • Public Service Act (PS Act) determinations (sections 24 (1) and 24 (3))
  • Common law arrangements
• As a proportion of the APS, enterprise agreement coverage increased by 14% in 2023. This can be attributed to the increase in non-SES headcount during 2023.
• Table 14 provides a breakdown by classification of primary employment instrument coverage.

Individual Flexibility Arrangements

• An individual flexibility arrangement is a written agreement between an employer and employee. It varies the effect of an enterprise agreement or an award on an individual basis and must result in the employee being better off overall.
• Table 16 provides a breakdown by classification and gender of employees with an individual flexibility arrangement. It shows that less than 3% of APS employees had an individual flexibility arrangement in 2023 and 72% of employees using these arrangements were at the EL 1 or EL 2 classification.

Performance Bonuses

• Performance bonuses are defined as payments that are at risk and variable based on performance. 
• Table 5 provides a breakdown of performance bonuses paid by classification in 2023. It shows 0.5% of APS employees received a performance bonus in 2023.
• The median performance bonus paid in 2023 was $1000 decreasing from $1,286 in 2022. The decrease in the median reflects lower value bonus payments and an increase in non-SES recipients.
• The Performance Bonus Guidance – Principles governing performance bonus use in Commonwealth entities and companies published in 2021 sets out Government expectations that performance bonuses are used only in limited circumstances.

APS Job Family Model

• The APS Job Family Model groups job roles into related functions performed within the APS. Job family data is collected by the APSC and collated in the APS Employment Database.
• As at 31 December 2023, data relating to job families had been provided for 84.8% of employees covered in this report. More information about the APS Job Family Model can be found on the APSC website.
• Table 13 shows the number of employees by APS job family. Service Delivery is the most common job family, with the overwhelming majority of employees in this job family engaged at an APS level. This is followed by Compliance and Regulation, Administration and Portfolio, Program and Project Management. The largest proportions of EL employees are in the Policy, Legal and Parliamentary and Portfolio, Program and Project Management job families. SES employees reside almost exclusively within the Senior Executive job family.