Government Sector Employment Act 2013

The Government Sector Employment Act 2013 (GSE Act) commenced on 24 February 2014.

The Public Service senior executive established under the GSE Act is comprised of four Public Service senior executive (PSSE) bands in accordance with the Government Sector Employment (Senior Executive Bands) Determination 2014.

Under section 40(1) of the GSE Act, the remuneration package of a Public Service senior executive must be within the range determined under the SOOR Act for the band in which the executive is employed.

Transitional arrangements

Schedule 4 to the GSE Act includes transitional arrangements relating to the remuneration of former SES executives potentially until 24 February 2017. These transitional arrangements provide, amongst other things, for the following executives to have their remuneration packages increased as a result of a determination of the SOORT under Part 3A of the SOOR Act:

• persons continuing in office as Secretaries of Departments (clause 6(2), Schedule 4, GSE Act);
• persons continuing in office as heads of Public Service agencies that correspond with pre-GSE Act Government Service Divisions (clause 7(2), Schedule 4, GSE Act);
• persons holding office as heads of other Public Service agencies (clause 7(5), Schedule 4, GSE Act);
• ‘former SES executives’ (clause 8(1)(a), Schedule 4, GSE Act);
• statutory officers listed in clause 8A(1), Schedule 4, GSE Act).

Annual Determinations by SOORT

Part 3A Determination – former SES executives

Under section 24C of Part 3A of the SOOR Act, SOORT is required to make annual determinations of the remuneration packages on and from 1 July in the year concerned for the executives to whom the transitional arrangements described above apply.  

The determinations by SOORT do not affect existing Recruitment or Retention Allowances. Employees in receipt of these allowances continue to receive them in accordance with clause 8B of Schedule 4 of the GSE Act, at the quantum for which they were originally approved.

Other than as provided for in these transitional arrangements, Recruitment and Retention Allowances are no longer available.

Part 3B Determination – Public Service senior executives

Under section 24O of Part 3B of the SOOR Act, SOORT is required to make annual determinations of the remuneration packages for Public Service senior executives on and from 1 July in the year concerned.

Determinations under section 24O of the SOOR Act apply to the Secretary of a Department and any other Public Service senior executive to whom Division 4 of Part 4 of the GSE Act applies (other than those subject to the transitional arrangements).

The determination does not provide for Recruitment and Retention Allowances as the new GSE Act senior executive executive arrangements provide for a different approach for market-based recruitment adjustments.

2015 SOORT Determinations – 2.5% increase

SOORT’s 2015 annual determinations under section 24C and section 24O of the SOOR Act provide for an increase of 2.5% for both former SES executives and the remuneration packages for Public Service senior executive bands respectively, effective on and from 1 July 2015.

2015-16 NSW Public Service Senior Executive Remuneration Management Framework

The NSW Public Service Senior Executive Remuneration Management Framework (‘the Framework’) has been updated to reflect the 2015 SOORT determination. The discretionary ranges and the formulas for each job evaluation methodology in appendices 1 to 3 have been updated to reflect the 2.5% SOORT increase.

The Framework applies to all Public Service senior executive roles.   

Attention is drawn to Part 4.3 of the Framework:

“The annual SOORT determination increase is to be applied to each role’s base remuneration point (through application of the updated formula for calculation of base remuneration points) and its discretionary range (through application of the percentage increase to the discretionary ranges for bands 1, 2 and 3).

Each executive officer’s current remuneration point within the range for their role will also be adjusted to incorporate the increase.  This increase is separate from any progression within the range based on performance assessment.”

Note: The Framework has been amended to remove the requirement to report to the Public Service Commission when progression occurs within the discretionary remuneration range for labour market reasons and, separately, when a remuneration adjustment is required during the recruitment process and prior to employment.     

However, agencies are to report on the average remuneration of senior executives within each band as per the annual reports regulation (refer to Part 5 of the Framework for further information).  

The PSC’s Market Verification Guidelines are being developed. Once developed, they will be distributed to the Public Service agencies for comment.

Further information

Employees should contact their agency’s HR contacts in the first instance for further information about the application of the SOORT’s annual determinations for 2015. Agency HR contacts can contact the Public Service Commission with any enquiries using the contact details at the end of this Circular.

 

Graeme Head
Public Service Commissioner

 

Attachment:

G2015_003 2015-16 NSW Public Service Senior Executive Remuneration Management Framework

Authorities:

Government Sector Employment Act 2013

Government Sector Employment (Senior Executive Bands) Determination 2014

Statutory and Other Offices Remuneration Act 1975

Report and Determination – Public Service senior executives

Report and Determination – Chief Executive and Senior Executive Services