2. Key remuneration concepts
The key remuneration components reported in this section are Base Salary, Total Remuneration Package (Base Salary plus benefits), and Total Reward (Total Remuneration Package plus bonuses). To gain a complete understanding of APS remuneration, all elements of the key remuneration components need to be considered. The Total Reward (TR) provides the most complete overall remuneration information as it includes Base Salary and Total Remuneration Package (TRP) as component parts.
2.1 Base salary
The term Base Salary describes the full-time annualised salary paid to an employee. It includes salary sacrifice amounts and pre-tax employee superannuation contributions made through salary sacrifice arrangements. It excludes bonuses and other benefits.
In 2015, the overall median Base Salary increase was 0.1%. The median Base Salary increase at the non-SES classifications was 0.1% and the median Base Salary increase at the SES classifications was 1.4%.
Table 2.1 provides the 2014 and 2015 median Base Salaries. The greatest increase in median Base Salary was at the SES 3 classification with a 3.3% increase. The lowest median movement from 2014 to 2015 was 0.0% shared by five classifications.
The result of lower employee mobility over the last few years is that a large proportion of APS employees are remaining at the same classification in the same agency. When employees remain at the same classification for long periods, they are likely to have advanced through the salary scale and reached the top for their classification.
The median length at level for ongoing APS employees in 2015 was 6.3 years; this figure has steadily increased since 2008, when the median length at level was 3.0 years.
It is standard practice for newly engaged and promoted employees to commence on salaries at or near the bottom of their salary pay range. The increase in engagements in 2015 compared with 2014 is likely to have influenced the average salary at the APS 2, 3, 4 and 5 classifications.
At the SES classifications, the change in the population arising from machinery of government changes is likely to have influenced the median movement.
Figure 2.1: Median Base Salary by classification
Figure 2.2: Base Salary range by classification: Graduate to EL 1
Note: Refer to Section 7: Remuneration Findings by Classification for the minimum and maximum values for each classification.
Note: Refer to Appendix A.2: Definitions for notes on interpreting box plots.
Figure 2.3: Base Salary range by classification: EL and SES
Note: Refer to Section 7: Remuneration Findings by Classification for the minimum and maximum values for each classification.
Note: Refer to Appendix A.2: Definitions for notes on interpreting box plots.
| Class. | Employees | P5 | Q1 | Median | Q3 | P95 | Average | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 n | 2015 n | 2014 $ | 2015 $ | 2014 $ | 2015 $ | 2014 $ | 2015 $ | change % | 2014 $ | 2015 $ | 2014 $ | 2015 $ | 2014 $ | 2015 $ | change % | |
| Graduate | 1,160 | 1,159 | 53,652 | 53,652 | 57,965 | 57,513 | 60,158 | 60,158 | 0.0 | 63,236 | 63,236 | 68,027 | 69,456 | 60,343 | 60,442 | 0.2 |
| APS 1 | 918 | 804 | 38,015 | 39,144 | 43,216 | 43,216 | 47,004 | 47,736 | 1.6 | 48,533 | 48,533 | 49,697 | 49,697 | 45,769 | 45,953 | 0.4 |
| APS 2 | 3,200 | 3,265 | 49,321 | 48,525 | 53,129 | 51,308 | 54,588 | 54,588 | 0.0 | 55,096 | 55,096 | 56,435 | 56,435 | 53,932 | 53,533 | -0.7 |
| APS 3 | 15,871 | 15,493 | 55,553 | 55,511 | 59,933 | 59,933 | 61,512 | 61,512 | 0.0 | 62,492 | 62,492 | 62,560 | 62,560 | 60,801 | 60,696 | -0.2 |
| APS 4 | 28,323 | 29,181 | 63,960 | 62,493 | 67,247 | 66,987 | 69,239 | 69,239 | 0.0 | 69,239 | 69,239 | 70,144 | 70,144 | 68,256 | 68,122 | -0.2 |
| APS 5 | 19,964 | 19,835 | 70,108 | 69,395 | 72,856 | 72,856 | 74,331 | 74,451 | 0.2 | 75,208 | 75,208 | 76,407 | 76,624 | 74,191 | 74,256 | 0.1 |
| APS 6 | 30,447 | 30,673 | 79,759 | 78,842 | 85,301 | 85,301 | 86,844 | 86,923 | 0.1 | 89,217 | 89,217 | 90,276 | 90,890 | 86,683 | 86,869 | 0.2 |
| EL 1 | 25,402 | 24,782 | 101,361 | 101,278 | 106,230 | 106,301 | 108,013 | 108,382 | 0.3 | 108,796 | 108,796 | 115,778 | 115,778 | 107,975 | 108,160 | 0.2 |
| EL 2 | 11,706 | 11,335 | 122,892 | 122,032 | 130,894 | 131,524 | 133,905 | 133,905 | 0.0 | 137,597 | 138,290 | 151,097 | 151,097 | 135,657 | 136,322 | 0.5 |
| SES 1 | 1,794 | 1,897 | 156,000 | 159,125 | 173,519 | 173,519 | 178,617 | 181,006 | 1.3 | 192,500 | 195,474 | 216,901 | 215,662 | 183,809 | 185,092 | 0.7 |
| SES 2 | 503 | 528 | 201,000 | 208,711 | 222,173 | 223,363 | 230,000 | 232,644 | 1.1 | 247,460 | 251,534 | 272,215 | 277,897 | 234,878 | 238,674 | 1.6 |
| SES 3 | 109 | 113 | 272,659 | 275,000 | 287,350 | 293,097 | 302,000 | 312,000 | 3.3 | 327,924 | 336,448 | 408,617 | 380,692 | 316,131 | 319,884 | 1.2 |
| Total | 139,397 | 139,065 | ||||||||||||||
2.2 Total Remuneration Package
Total Remuneration Package (TRP) includes Base Salary plus:
- agency superannuation contribution;
- motor vehicle allowance;
- motor vehicle parking; and
- any other benefits and supplementary payments.
In essence, TRP covers Base Salary plus benefits. It excludes bonuses and shift and overtime payments. These payments are included in Total Reward (TR).
The overall movement in median TRP across all classifications from 2014 to 2015 was an increase of 0.1%. The non-SES classifications median TRP increased by 0.1%, and the SES classifications median TRP increased by 0.6%.
The SES 3 classification saw the greatest increase in median TRP with a 1.7% increase from 2014. The key contributor to this is the increase in median Base Salary of 3.3%. The second greatest increase in median TRP was 0.9%, at the APS 1 classification.
The lowest median TRP change was at the APS 4 classification, with a 0.1% decrease from 2014 to 2015.
As demonstrated in Table 3.1, Base Salary makes up around 85% of the TR received by employees at the non-SES classifications. The key benefit received by non-SES employees in these classifications is the employer superannuation contribution which is primarily calculated on Base Salary. Normally the main contributor to TRP movement is Base Salary movement.
Figure 2.4: Median Total Remuneration Package by classification
Figure 2.5: Total Remuneration Package range by classification: Graduate to EL 1
Note: Refer to Section 7: Remuneration Findings by Classification for the minimum and maximum values for each classification.
Note: Refer to Appendix A.2: Definitions for notes on interpreting box plots.
Figure 2.6: Total Remuneration Package range by classification: EL and SES
Note: Refer to Section 7: Remuneration Findings by Classification for the minimum and maximum values for each classification.
Note: Refer to Appendix A.2: Definitions for notes on interpreting box plots.
| Class. | Employees | P5 | Q1 | Median | Q3 | P95 | Average | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 n | 2015 n | 2014 $ | 2015 $ | 2014 $ | 2015 $ | 2014 $ | 2015 $ | change % | 2014 $ | 2015 $ | 2014 $ | 2015 $ | 2014 $ | 2015 $ | change % | |
| Graduate | 1,160 | 1,159 | 62,084 | 62,084 | 66,979 | 66,813 | 69,342 | 69,422 | 0.1 | 72,974 | 72,974 | 76,388 | 78,820 | 69,689 | 69,906 | 0.3 |
| APS 1 | 918 | 804 | 43,869 | 45,172 | 50,325 | 50,428 | 54,858 | 55,371 | 0.9 | 57,393 | 57,155 | 59,747 | 60,007 | 53,624 | 53,995 | 0.7 |
| APS 2 | 3,200 | 3,265 | 56,916 | 56,196 | 61,422 | 59,699 | 63,581 | 63,581 | 0.0 | 65,249 | 65,233 | 67,865 | 68,268 | 63,291 | 62,716 | -0.9 |
| APS 3 | 15,871 | 15,493 | 64,159 | 64,108 | 69,485 | 69,876 | 72,116 | 72,116 | 0.0 | 74,123 | 74,665 | 77,603 | 79,781 | 71,724 | 71,906 | 0.3 |
| APS 4 | 28,323 | 29,181 | 74,086 | 72,117 | 78,683 | 78,804 | 80,210 | 80,152 | -0.1 | 82,464 | 82,741 | 84,632 | 84,954 | 80,290 | 80,195 | -0.1 |
| APS 5 | 19,964 | 19,835 | 81,391 | 80,361 | 85,778 | 85,778 | 87,427 | 87,417 | 0.0 | 89,633 | 89,874 | 92,518 | 93,654 | 87,379 | 87,550 | 0.2 |
| APS 6 | 30,447 | 30,673 | 92,152 | 91,060 | 99,285 | 99,944 | 102,246 | 102,361 | 0.1 | 105,472 | 106,285 | 109,144 | 110,230 | 101,972 | 102,270 | 0.3 |
| EL 1 | 25,402 | 24,782 | 117,642 | 116,875 | 124,207 | 124,647 | 126,976 | 127,269 | 0.2 | 128,634 | 129,753 | 138,390 | 138,823 | 127,158 | 127,594 | 0.3 |
| EL 2 | 11,706 | 11,335 | 142,925 | 143,006 | 153,539 | 154,526 | 158,026 | 158,707 | 0.4 | 164,940 | 166,425 | 182,357 | 184,348 | 160,686 | 161,899 | 0.8 |
| SES 1 | 1,794 | 1,897 | 207,691 | 208,308 | 227,891 | 225,976 | 238,223 | 239,880 | 0.7 | 249,580 | 249,893 | 270,594 | 268,400 | 238,879 | 238,782 | 0.0 |
| SES 2 | 503 | 528 | 263,655 | 263,682 | 286,804 | 284,069 | 299,720 | 299,878 | 0.1 | 313,074 | 312,235 | 340,273 | 344,792 | 299,414 | 301,742 | 0.8 |
| SES 3 | 109 | 113 | 344,405 | 343,294 | 367,090 | 371,612 | 389,011 | 395,599 | 1.7 | 410,139 | 412,038 | 482,431 | 450,739 | 394,796 | 395,842 | 0.3 |
| Total | 139,397 | 139,065 | ||||||||||||||
2.3 Total Reward
Total Reward (TR) is the sum of the Total Remuneration Package (TRP) plus bonuses. Bonuses include:
- individual performance bonus;
- retention bonus;
- productivity bonus; and
- whole-of-agency or group bonuses.
Median performance bonuses in 2015 ranged from $725 at the APS 1-4 classifications to $27,493 at the SES 3 classification.
The overall movement in median TR across all classifications from 2014 to 2015 was a decrease of 0.1%. The non-SES classifications median TR decreased by 0.2%, and the SES classifications median TR increased by 0.7%.
The APS 1 classification saw the greatest increase in median TR with an increase of 1.0% from 2014. The SES 1 and SES 3 classifications recorded the second highest increase in median TR with an increase of 0.8%.
The APS 2 classification showed the greatest decrease of median TR, with a decrease of 0.9%, followed by the APS 4 classification with a decrease of 0.5%.
A whole of agency lump sum payment was paid in a large agency in 2014. The change in median movements in the lower classifications may reflect that no such payment was paid in 2015.
Figure 2.7: Median Total Reward by classification
Figure 2.8: Total Reward range by classification: Graduate to EL 1
Note: Refer to Section 7: Remuneration Findings by Classification for the minimum and maximum values for each classification.
Note: Refer to Appendix A.2: Definitions for notes on interpreting box plots.
Figure 2.9: Total Reward range by classification: EL and SES
Note: Refer to Section 7: Remuneration Findings by Classification for the minimum and maximum values for each classification.
Note: Refer to Appendix A.2: Definitions for notes on interpreting box plots.
| Class. | Employees | P5 | Q1 | Median | Q3 | P95 | Average | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 n | 2015 n | 2014 $ | 2015 $ | 2014 $ | 2015 $ | 2014 $ | 2015 $ | change % | 2014 $ | 2015 $ | 2014 $ | 2015 $ | 2014 $ | 2015 $ | change % | |
| Graduate | 1,160 | 1,159 | 62,084 | 62,084 | 66,979 | 66,813 | 69,342 | 69,422 | 0.1 | 73,574 | 72,974 | 76,388 | 78,820 | 69,778 | 69,917 | 0.2 |
| APS 1 | 918 | 804 | 43,869 | 45,172 | 50,368 | 50,428 | 55,059 | 55,633 | 1.0 | 57,427 | 57,341 | 60,295 | 60,011 | 53,791 | 54,088 | 0.6 |
| APS 2 | 3,200 | 3,265 | 56,916 | 56,196 | 61,571 | 59,725 | 64,906 | 64,306 | -0.9 | 66,243 | 65,233 | 68,012 | 68,299 | 63,665 | 62,895 | -1.2 |
| APS 3 | 15,871 | 15,493 | 64,275 | 64,117 | 69,510 | 69,907 | 72,291 | 72,199 | -0.1 | 74,428 | 74,678 | 78,742 | 80,839 | 71,994 | 72,133 | 0.2 |
| APS 4 | 28,323 | 29,181 | 74,101 | 72,117 | 78,760 | 78,804 | 80,760 | 80,395 | -0.5 | 82,464 | 82,741 | 84,711 | 85,039 | 80,403 | 80,265 | -0.2 |
| APS 5 | 19,964 | 19,835 | 81,499 | 80,433 | 85,916 | 85,916 | 87,844 | 87,547 | -0.3 | 89,759 | 90,191 | 93,175 | 94,480 | 87,731 | 87,839 | 0.1 |
| APS 6 | 30,447 | 30,673 | 92,165 | 91,149 | 99,736 | 100,047 | 102,655 | 102,654 | 0.0 | 105,472 | 106,285 | 109,251 | 110,643 | 102,312 | 102,576 | 0.3 |
| EL 1 | 25,402 | 24,782 | 117,865 | 116,963 | 124,278 | 124,647 | 127,690 | 127,701 | 0.0 | 129,258 | 130,237 | 139,035 | 139,906 | 127,630 | 128,049 | 0.3 |
| EL 2 | 11,706 | 11,335 | 143,988 | 143,678 | 154,379 | 155,266 | 159,105 | 159,399 | 0.2 | 166,337 | 167,400 | 186,062 | 187,881 | 162,545 | 163,486 | 0.6 |
| SES 1 | 1,794 | 1,897 | 210,341 | 209,568 | 228,347 | 226,442 | 238,931 | 240,811 | 0.8 | 251,567 | 251,198 | 273,598 | 270,580 | 240,393 | 239,909 | -0.2 |
| SES 2 | 503 | 528 | 265,381 | 266,150 | 288,783 | 285,602 | 300,197 | 300,713 | 0.2 | 314,260 | 314,389 | 347,255 | 353,669 | 304,030 | 305,771 | 0.6 |
| SES 3 | 109 | 113 | 344,405 | 343,294 | 369,202 | 375,104 | 393,272 | 396,453 | 0.8 | 412,458 | 414,942 | 482,431 | 450,739 | 403,621 | 403,544 | 0.0 |
| Total | 139,397 | 139,065 | ||||||||||||||