Remuneration bands for Victorian Public Service executives - annual adjustment

Submissions do not necessarily reflect the views of the Tribunal and assertions made in them have not been fact-checked.

Submissions have been published in their original form and not corrected for publication. They are in order of receipt, either in full or in a de-identified or redacted form, as requested.

For an accessible version of these submissions, please email enquiries@remunerationtribunal.vic.gov.au.

In accordance with section 24(1) of the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019 (Vic) (VIRTIPS Act), the Tribunal hereby publishes notice of its intention to make a Determination adjusting the values of the remuneration bands for executives employed in Victorian Public Service (VPS) bodies.

The Tribunal invites submissions from interested persons or bodies in relation to the proposed Determination.

Details about the proposed Determination and how to make a submission are set out below.

What will the Determination cover?

The Determination will provide for an annual adjustment to the values of the remuneration bands for executives employed in public service bodies. The current values of the remuneration bands are available on the Tribunal’s Remuneration bands for executives employed in public service bodies webpage.

The Determination will apply to executives employed in:

• departments
• Administrative Offices
• the Victorian Public Sector Commission.

It will also apply to public service body Heads, who are defined in the Public Administration Act 2004 (Vic) as:

• Secretaries of departments
• heads of Administrative Offices
• the Victorian Public Sector Commissioner.

As set out in the Victorian Public Service Executive Employment Handbook, employers retain the power to set an individual executive’s remuneration.

The Tribunal’s Victorian Public Service Executive Remuneration Guidelines support employers in setting remuneration for executives within the remuneration bands.

What will the Determination not cover?

The purpose of an annual adjustment Determination is to take account of changes since the previous Determination. Given the scope and purpose of this Determination, the Tribunal does not propose to consider matters that are more appropriately addressed in a comprehensive Determination. These include the roles and responsibilities of executives.

In making a Determination, the Tribunal does not assess the performance of individual executives.

When will the Tribunal make its Determination?

The Tribunal intends to make the Determination at the same time as its Determination of the remuneration bands for executives employed in prescribed public entities, which will be made as soon as practicable after the earliest statutory date of 19 September 2025.

The VIRTIPS Act requires that the new remuneration bands will apply from 1 July 2025.

How will the Tribunal make its Determination?

The Tribunal is required to consider the following factors in making a Determination:

• current and projected economic conditions and trends
• the financial position and fiscal strategy of the State of Victoria
• any statement or policy issued by the Government in respect of its wages policy (or equivalent) and the remuneration and allowances of any specified occupational group as defined in the VIRTIPS Act
• submissions received in relation to the Determination.

Current and projected economic conditions and trends

The Tribunal’s understanding of current and projected economic conditions and trends will be informed by Victorian and federal budgets, statements by the Reserve Bank of Australia, decisions of the Fair Work Commission and other relevant information.

The Tribunal will also have regard to the latest data on key economic indicators published by the Australian Bureau of Statistics (ABS), including the following releases:

• Australian National Accounts: National Income, Expenditure and Product
• Average Weekly Earnings
• Consumer Price Index
• Labour Force
• Wage Price Index

The table below summarises key ABS data about the Victorian and Australian economies at the time of issuing this notice (June 2025).

Financial position and fiscal strategy of the State of Victoria

The Tribunal’s understanding of the financial position and fiscal strategy of the State of Victoria will be informed by the Victorian Budget 2025-26 (May 2025) and the latest Auditor-General’s Report on the Annual Financial Report of the State of Victoria (November 2024).

At the time of issuing this notice, the Tribunal notes the following with respect to Victoria’s financial position and fiscal strategy, according to the Victorian Budget 2025-26:

• The general government sector is forecast to have an operating surplus of $0.6 billion in 2025-26, with forecast operating surpluses of $1.9 billion in 2026-27, $2.4 billion in 2027-28 and $1.5 billion in 2028-29.
• Net debt for the general government sector is expected to be $155.5 billion at June 2025 and increase to $194.0 billion by June 2029.

Relevant Victorian Government remuneration policies

The Tribunal is required to take into account the Victorian Government’s Wages Policy and the Enterprise Bargaining Framework, which applies to enterprise agreements entered into by departments and agencies in the Victorian public sector.

The current policy provides that employees’ wages and conditions will be allowed to grow at a rate of 3% per annum over the life of an agreement. In addition to annual wage increases, a separate lump sum, cash payment is available, equivalent to an additional 0.5% of overall agreement costs.

Additional changes to allowances and other conditions – but not ‘general wages’ – may be permitted where the Victorian Government agrees that these will address key agency or wider public sector priorities and where the costs are funded through appropriate cash offsets or an approved funding strategy.

The Tribunal is also required to consider Victorian Government policies in relation to the remuneration of executives employed in public service bodies. These include the requirement for public service bodies to absorb the cost of any increases to executives’ minimum superannuation entitlements under Commonwealth law.

Minimum superannuation entitlements will increase on 1 July 2025, due to the following changes:

• The Superannuation Guarantee rate is scheduled to increase from 11.5 per cent to 12.0 per cent.
• The maximum superannuation contribution base will be indexed in line with full-time adult average weekly ordinary time earnings.

How can I make a submission?

The Tribunal invites submissions from any person or body, including any affected person or class of affected persons, in relation to the proposed Determination.

Consultation questions

You may wish to consider the following questions when preparing your submission:

• What adjustment to the values of the remuneration bands should the Tribunal consider, if any?
• Which economic and financial indicators should the Tribunal consider in adjusting the values of the remuneration bands?
• What other matters should the Tribunal consider when making the Determination, if any, in addition to those listed in the VIRTIPS Act?

How to make a submission

Written submissions, and requests for assistance to make a submission, should be emailed to the Tribunal Secretariat at enquiries@remunerationtribunal.vic.gov.au.

Written submissions must be sent to the Tribunal by 5pm on Friday 11 July 2025.

The Tribunal may also accept requests from interested parties to make submissions after 11 July 2025. Please contact the Tribunal Secretariat at enquiries@remunerationtribunal.vic.gov.au to request to make a late submission.

Those wishing to make an oral submission must advise the Tribunal Secretariat via email by Friday 4 July 2025.

Publication and use of submissions

The Tribunal may use information provided in submissions in its Determination.

To promote transparency, submissions will be published on the Tribunal’s website in full or in summary form as appropriate. If the submitter seeks confidentiality or the submission contains information that is identified as commercially sensitive, the Tribunal will work with the submitter to publish the submission in a form which protects the confidentiality or commercial sensitivity.

The Tribunal may remove identifying information from submissions if published.

Submissions that contain offensive or defamatory comments, or are outside the scope of the Determination, will not be published.

The Tribunal may receive a request under the Freedom of Information Act 1982 (Vic). Any such request will be determined in accordance with the Freedom of Information Act which contains provisions designed to protect personal information given in confidence. Further information can be found at the Office of the Victorian Information Commissioner.