1 INTRODUCTION

On 16 February 2005 the NSW Industrial Relations Commission made the Crown Employees (Public Sector - Salaries 2004) Award by consent. The award is part of the settlement of the PSA public sector salary claim by the parties including the Public Employment Office (PEO) and the Public Service and Professional Officers Association (PSA).

The Award provides for an increase to salaries and related allowances (4% with effect from the beginning of the first full pay period on or after 1 July 2004, a further increase of 4% from the first full pay period on or after 1 July 2005 and 4% from the first full pay period on or after 1 July 2006). As advised in Circular 2004-45, the back pay applies to staff that were employed as at 1 January 2005.

A Memorandum of Understanding (MOU) has been entered into between the Government and the PSA, made in full and final settlement of the PSA's public sector salary claim. It provides for a further one year award commencing on 1 July 2007 and expiring on 1 July 2008. This will provide for a further 4% increase from the first full pay period on or after 1 July 2007.

The Awards, Agreements and Determinations that will receive the pay increases are listed in Attachment A. Pay schedules for some key classifications subject to adjustment and advice are contained in Attachment B for information. Attachment B also contains advice as to which allowances should be adjusted in line with salaries and which allowances are not subject to adjustment.

Advice on adjustment of annual rates of salary and weekly rates of wages was provided in Circular 2004-45 which may be accessed on the Premier's Department website at www.dpc.nsw.gov.au under Circulars and Memos

You should also note that the 2004 Award does not cover:

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

The Public Employment Office should be contacted if organisations wish to seek advice on whether rates of pay under particular industrial instruments should be adjusted in line with the 2004 Award.

Agencies should also ensure that they have been reporting the new salary rates for employees to Pillar Administration to ensure that the increased salaries are taken into account for superannuation purposes.

2. OVERTIME

In accordance with Clause 99 of the Crown Employees (Public Service Conditions of Employment 2002) Award, the maximum salary rate on which overtime payment may be calculated, is set out below:

• $68,361 per year with effect from the beginning of the first pay period to commence on or after 1 July 2004
• $71,095 per year with effect from the beginning of the first pay period to commence on or after 1July 2005
• $73,939 per year with effect from the beginning of the first pay period to commence on or after 1 July 2006

3. PART-TIME AND CASUAL EMPLOYEES

Where an industrial instrument, including a determination of the Public Employment 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 Employment Office.

4. 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.

5. ENHANCED CONDITIONS

The non-salary enhancements agreed to by the parties (Circular 2004-45) regarding maternity leave, paternity leave, and reference to enhanced extended leave provisions will be formalised by a variation to the Crown Employees (Public Service Conditions of Employment) Award. The parties have agreed to establish a framework to negotiate further changes to the Conditions Award and the NSW Personnel Handbook to remove inconsistencies. Agencies will be advised when the award is updated.

It will also be necessary to amend the Public Sector Employment and Management Act 2002 to give effect to the enhanced provisions in respect of extended leave and this process is already underway.

These processes regarding award variation and legislative amendments will formalise the entitlements that were made available by administrative action by agencies for employees who had an entitlement to commence the relevant form of leave on or after 1 January 2005. In the interim agencies are authorised to grant these conditions to employees covered by the Awards, Agreements and Determinations listed in Schedule A of the Award in line with Circular 2004-45. It should be noted that Schedule A has been revised and updated to include new industrial instruments and to delete instruments that are no longer applicable.

Any enquiries may be directed to Merillyn Grey on telephone number 9228-3179.

C Gellatly
Director-General

Issued : Employee Relations and Workforce Planning Services ( Public Employment Office)
Contact: Merillyn Grey, Senior Industrial Officer
EMail: [email protected]
Telephone no: 9228 3197 Facsimile: 9228 4056
File no: PSM/03370 Pt 2
Date: 21 March 2005
This circular supersedes Circular 2001-65

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Related to Circular 2004-45, superseded by C2007-02