The purpose of this Circular is to advise Department and Agency Heads of arrangements following the acceptance of the Government's offer of settlement in relation to the PSA public sector salary claim.

The PSA has advised that its members have endorsed the Government's offer, which provides for:

• Salary increases of 4 % per annum over 4 years fully funded and backdated to 1 July 2004.
  
  In addition non-salary enhancements of:
  • the introduction of paid parental leave of 1 week at full pay or 2 weeks at half pay;
  • an increase in paid maternity and adoption leave to 14 weeks at full pay or 28 weeks at half pay;
  • access to pro-rata extended leave after 7 years service;
  • allowing employees to take a period of extended leave at double pay, ie. an employee may use their entitlement to 2 months extended leave by taking 1 months leave and receiving 2 months pay for that 1 month period; and
  • public holidays that fall whilst an employee is on a period of extended leave will be paid and not debited from an employees leave entitlement.

The agreement will be subject to a Memorandum of Understanding between the parties.

1. SALARY INCREASES

The PSA and the Public Employment Office are currently developing new salary scales for each classification to be covered by the new Award. Agencies will be contacted shortly to check rates applicable to their organisation.

It is anticipated that the new salaries Award will be made by the Industrial Relations Commission on 15 February 2005. Agencies will be advised on the making of the new Award.

In the interim, the PEO has determined that agencies may implement salary increases as soon as practicable after 1 January 2005. Back pay will only apply to existing employees who are employed as at 1 January 2005. Former employees who have left the public sector prior to 1 January 2005 are not entitled to back pay.

Agencies who expect that salary increases will not be flowed on by mid February 2005 should advise the PEO accordingly.

Implementation of the salary increases in the interim should be in accordance with the following:

1.1 Salary and Wage rates subject to variation

Only rates of pay contained in the attached schedule of Awards, Determinations and Agreements are to be increased (Attachment A).

Please also note that the salaries agreement does not cover:

• classifications covered by other awards or other industrial instruments to which the PSA is not a party; and
• staff covered by Federal awards or agreements.

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

"Rates of pay will be adjusted in accordance with the Crown Employees (Public Sector - Salaries January, 2002) Award or any award replacing that award."

The PEO has determined that Department's may grant increases to classifications under those instruments pending formal application for variation.

1.2 Adjustment of Salaries and Wages
1.2.1 Salaries - Annual Rates

Annual salaries, except for those specified below, shall be adjusted by an increase of four per cent (4%), with effect from the beginning of the first pay period to commence on or after 1 July 2004.

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.

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

Junior rates, other than those calculated on a percentage basis
These rates are to be adjusted as specified in the normal way.

1.2.2 Wages - Weekly Rates

Weekly wages, except for those specified below, shall be adjusted by an increase of four per cent (4%), with effect from the beginning of the first pay period to commence on or after 1 July 2004.

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.

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

Junior rates, other than those calculated on a percentage basis
The rates are to be adjusted as specified in the normal way.

1.3 Adjustment of Allowances

Allowances listed in Attachment B titled "Allowances Subject to Adjustment", shall be adjusted by an increase of four per cent (4%), with effect from the beginning of the first pay period to commence on or after 1 July 2004.

Those allowances listed in Attachment C titled "Allowances Not Subject To Adjustment" are not to be adjusted.

1.3.1 Shift Allowances

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

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.

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.

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.

1.3.2 Other Allowances

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

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.

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.

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.

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.

2. ENHANCED CONDITIONS

The enhanced conditions will become available to employees who have an entitlement to commence the relevant form of leave on or after 1 January 2005.

Agencies are authorised to provide the new entitlements to employees by administrative action from 1 January 2005 pending the amendment of the Crown Employees (Conditions and Employment) Award and other relevant instruments.

Amendments will be made to the Personnel Handbook shortly.

Further information on the operation of the new provisions is as follows:

2.1 Paid Parental Leave

Up to 1 week on full pay or 2 weeks on half pay parental leave is available to employees who:

• otherwise meet the requirements for taking parental leave as set out in clause 80 of the Crown Employees (Conditions of Employment) Award; and
• apply for parental leave within the time and the manner determined by the Department Head; and
• prior to the expected date of birth or taking custody have completed not less than 40 weeks service.

The period of paid leave does not extend the current entitlement of up to 12 months leave, but is part of it.

Parental leave is available to male or female staff.

2.2 Paid Maternity or Adoption Leave

The entitlement and conditions attached to paid maternity or adoption leave remain unchanged, except that the quantum of leave will be 14 weeks instead of 9 weeks. Leave may be taken at full pay, half pay or as a lump sum.

2.3 Extended Leave after 7 years service

Employees with 7 years or more service will be entitled to take (or be paid out on resignation) extended leave in the usual manner. The quantum of leave available is that which would have applied if pro rata leave was granted. For example an employee with 7 years service has an extended leave entitlement of 30.8 working days. Calculations for other periods of service are set out at Chapter 6-7.3.3 of the Personnel Handbook or online via HR eXpert.

There is no requirement for an employee with 7 or more years of service to have been terminated or to have left employment because of illness, incapacity or domestic or other pressing necessity to claim an entitlement. No repayment will be required if an employee does not reach 10 years service.

2.4 Double Pay Extended Leave

An employee with an entitlement to extended leave may elect to take leave at double pay. The additional payment will be made as a non-superable taxable allowance payable for the period of the absence from work. The employee's leave balance will be debited for the actual period of the absence from work and an equivalent number of days as are necessary to pay the allowance.

For example, an employee with an extended leave balance of 50 working days wishing to take extended leave at double pay take 25 working days leave from work, reducing their extended leave balance to 25 days. A further 25 working days will be debited from the employee balance to cover payment of the non-superable taxable allowance.

Other leave entitlements, eg, recreation leave, sick leave and extended leave will accrue at the single time rate where an employee takes extended leave at double time.

Superannuation contributions will only be made on the basis of the actual absence from work, ie., at the single time rate.

Where an employee elects to take extended leave at double pay, in most cases a minimum period of absence of 1 week should be taken, ie., 1 week leave utilising 2 weeks of accrued leave.

2.5 Public holidays whilst on extended leave

Currently public holidays falling during an employees extended leave are deducted from the employee's accrued extended leave entitlement.

From 1 January 2005, public holidays that fall whilst an employee is on a period of extended leave will be paid and not debited from an employees leave entitlement.

In respect of public holidays that fall during a period of double pay extended leave an employee will be not be debited in respect of the leave on a public holiday. The employees leave balance will however be reduced by an additional day to fund the non-superable taxable allowance.

If you have any enquiries please contact your PEO client contact officer or Gayle Robson on 9228 3165.

C Gellatly
Director-General

Issued : Employee Relations and Workforce Planning Services ( Public Employment Office)
Contact: Gayle Robson, Manager, ERPAndA
EMail: [email protected]
Telephone no: 9228 3165 Facsimile: 9228 4056
File no: PSM/05310
Date: 17 December 2004
This circular supersedes Circular 2001-65

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This circular is related to C2005-10, superseded by C2007-02