What is notional salary used for?

Under the Government Sector Employment Regulation 2014, the notional salary determines:

• the money value of accrued annual leave owing to a Public Service senior executive who elects for the whole or part of this to be paid upon ceasing to be employed in a government sector agency and immediately commencing employment in another government sector agency in accordance with clause 29;

• the money value of extended leave accrued or payable to a Public Service senior executive in accordance with Schedule 1; and

• the amount of the allowance to be paid to a Public Service non-executive employee who is temporarily assigned to an executive role (being the difference between the salary of the person’s usual role and the notional salary of the executive role to which the person is temporarily assigned), in accordance with clause 21.

Public Service senior executives are employed under Division 4 of Part 4 of the Government Sector Employment Act 2013.

From 1 July 2019 Industrial Relations became the responsibility of the Department of Premier and Cabinet. This Circular replaces TC19-09. The content remains unchanged.

The Australian Taxation Office publishes the up-to-date maximum superannuation contribution base figures.  Agencies should use this information to update notional salaries in accordance with the ATO determination.