1. INTRODUCTION
On 6 December 2001 the NSW Industrial Relations Commission made the Crown Employees (Public Sector - Salaries January, 2002) Award (the 2002 Award) with the consent of the parties including the Public Sector Management Office (PSMO) and the Public Service Association (PSA). The 2002 Award provides for increases in salaries for classifications that were under the Crown Employees (Public Sector - Salaries June, 2000) Award (the 2000 Award).

Salaries are to be increased by three per cent (3%) with effect from the beginning of the first pay period to commence on or after the 1 January 2002, and by a further increase of four per cent (4%) with effect from the beginning of the first pay period to commence on or after the 1 January 2003, with a further increase of five per cent (5%) with effect from the beginning of the first pay period to commence on or after 1 July 2003.

Pay schedules for some key classifications subject to adjustment, are contained in the Attached pdf of the circular.

The increases are the final three increases outlined in the Memorandum of Understanding entered into on 2 March 2000 between the Government and the PSA and other public sector unions to progress priority issues for continued reform in the NSW public sector. The 2002 Award and the Memorandum of Understanding expire on 30 June 2004.

The pay increases generally apply to those employees who received salary increases under the 2000 Award. You might note that the 2002 Award specifically lists the Awards, Agreements and Determinations that are to receive the increases, in Schedule A. A copy of Schedule A is attached for your information.

Please also note that the 2002 Award does not cover:

• classifications covered by other awards or other industrial instruments to which the PSA is not a party;
• staff covered by Federal awards or agreements; and
• staff employed under the NSW TAFE Commission Managers Consent Award

(1) RELATED INDUSTRIAL INSTRUMENTS

(a) Please note that some classifications under the 2002 Award, are covered by the PSA with other unions. All employees under these classifications should receive the increases.

(b) Persons employed in Department of Community Services in classifications that are covered by the PSA but whose rates of pay are drawn from instruments to which the PSA is not a party, should have their rates adjusted in line with Section 2 of this circular.

(c) Persons employed as Court Reporters and Sheriff's Officers in the Attorney-General's Department, should have their rates adjusted in line with Section 2 of this circular.

(d) Please also note that some Awards, Agreements, Determinations, Enterprise Agreements and other forms of industrial instruments, that are NOT listed in Schedule A attaching to the 2002 Award, may have provisions to vary salaries consequent to variations to the public sector salaries award. They may have provisions like:

'Should there be a variation to the Crown Employees (Public Sector - Salaries January 2000) Award, or an Award replacing it, during the term of this industrial instrument, by way of salary increase, or other benefit to the public service, this industrial instrument shall be varied to give effect to any such salary increase, or other benefit, from the operative date of the variation of the former Award, or replacement Award.'

The Public Sector Management Office has determined the increases may be granted to classifications under those awards pending formal application for variation.

The Public Sector Management Office is available to provide advice to organisations on whether rates of pay under particular industrial instruments should be adjusted in line with the 2002 Award.

2. METHODS OF ADJUSTMENT - SALARIES AND WAGES

(1) SALARIES - ANNUAL RATES

(a) Annual salaries, except for those specified in paragraph (b) below, shall be adjusted as follows:

1. an increase of three per cent (3%), with effect from the beginning of the first pay period to commence on or after 1 January 2002;
2. a further increase of four per cent (4%), with effect from the beginning of the first pay period to commence on or after 1 January 2003; and
3. a further increase of five per cent (5%), with effect from the beginning of the first pay period to commence on or after 1 July 2003.

All annual rates are to be rounded off to the nearest dollar, with figures less than 50 cents going to the lower amount, and with figures 50 cents or more going to the higher amount.

(b) Junior rates, calculated as a percentage of an adult rate
These rates are to be adjusted in accordance with their percentage.

(c) Junior rates, other than those calculated on a percentage basis
These rates are to be adjusted as specified in 1(a) above.

(2) WAGES - WEEKLY RATES

(a) Weekly wages, except for those specified in paragraph (b) below, shall be adjusted as follows:

1. an increase of three per cent (3%), with effect from the beginning of the first pay period to commence on or after 1 January 2002;
2. a further increase of four per cent (4%), with effect from the beginning of the first pay period to commence on or after 1 January 2003; and
3. a further increase of five per cent (5%) with effect from the beginning of the first pay period to commence on or after 1 July 2003

All weekly rates are to be rounded off to the nearest 10 cents, with figures less than 5 cents going to the lower amount, and with figures 5 cents or more going to the higher amount.

(b) Junior rates, calculated as a percentage of an adult rate
These rates are to be adjusted in accordance with their percentage.

(c) Junior rates, other than those calculated on a percentage basis
The rates are to be adjusted as specified in 2(a) above.

3 METHODS OF ADJUSTMENT - ALLOWANCES
Allowances listed in Attachment A titled 'Allowances Subject to Adjustment', shall be adjusted by

1. an increase of three per cent (3%), with effect from the beginning of the first pay period to commence on or after 1 January 2002;
2. a further increase of four per cent (4%), with effect from the beginning of the first pay period to commence on or after 1 January 2003; and
3. a further increase of five percent (5%), with effect from the beginning of the first pay period to commence on or after 1 July 2003.

(1) SHIFT ALLOWANCES

(a) Shift allowances expressed as a percentage of a salary or wage shall continue to be calculated as a percentage of such salary or wage.

(b) Annual shift allowances shall be rounded off to the nearest dollar, with figures less than 50 cents to go to the lower amount and with figures 50 cents or more to go to the higher amount.

(c) Weekly shift allowances shall be rounded off to the nearest 10 cents, with figures less than 5 cents to go to the lower amount and with figures 5 cents or more to go to the higher amount.

(d) In the case of sums expressed as payable per shift or per hour, they are to be converted to a weekly equivalent and adjusted in the manner indicated above. The resultant figure is to be divided by five or the appropriate number of weekly hours normally worked.

(2) OTHER ALLOWANCES

(a) Allowances expressed as a percentage of a salary or wage shall continue to be calculated as a percentage of such salary or wage.

(b) Allowances expressed as a formula or by reference to a salary or wage shall continue to be calculated as specified in the relevant Award, Agreement or Determination.

(c) Annual allowances shall be rounded off to the nearest dollar, less than 50 cents to go to the lower amount and 50 cents or more to go to the higher amount.

(d) Weekly allowances shall be rounded off to the nearest 10 cents, less than 5 cents to go to the lower amount and 5 cents or more to go to the higher amount.

(e) In the case of sums expressed as payable per shift or per hour, such sums shall be converted to a weekly equivalent and adjusted in the same manner indicated above for weekly rates. The resultant figure is to be divided by five or the appropriate number of weekly hours normally worked by that classification.

4. EXCLUDED ALLOWANCES
Those allowances listed in Attachment B titled 'Allowances Not Subject To Adjustment' are not to be adjusted.

5. OVERTIME
In accordance with Clause 99 of the Crown Employees (Public Service Conditions of Employment 1997) Award, the maximum salary rate on which overtime payment may be calculated, is set out below:

• $60,194 per year with effect from the beginning of the first pay period to commence on or after 1 January 2002.
• $62,602 per year with effect from the beginning of the first pay period to commence on or after 1 January 2003.
• $65,732 per year with effect from the beginning of the first pay period to commence on or after 1July 2003.

6. PART-TIME AND CASUAL EMPLOYEES
Where an industrial instrument, including a determination of the Public Sector Management Office has specified the method or formula for calculating part-time or casual rates, agencies should now adjust the part-time or casual rate according to the formula.

All other part-time and casual rates will be considered separately upon application to the Public Sector Management Office.

7. STAFF RECEIVING SALARY MAINTENANCE
Staff who are receiving salary maintenance to a salary rate subject to adjustment, are to have their salaries adjusted in line with the above instructions.

8. ASSISTANCE AND ADVICE
The Public Sector Management Office is able to assist you if you have any difficulty in establishing whether a classification is covered by the increases. Please contact your client contact officer for this and any other enquiries.

Copies of the Circular can be found on the Premiers Department website at http://www.dpc.nsw.gov.au under Circular 2002 Salaries Award.

C Gellatly
Director-General

Supersedes C97-25; C97-30; C97-74. Superseded by C2004-45