education.vic.gov.au

Remuneration or salary package

The remuneration for the principal class is expressed in terms of a total remuneration package and for the teacher and education support classes is expressed in terms of a salary package. The difference between a total remuneration package and a salary package relates to the cost of employer superannuation that is included within a total remuneration package but excluded from a salary package. This difference can be illustrated as follows:

Total Remuneration Package

Total Remuneration Package: employer superannuation, optional benefits, salary
Total Remuneration Package

Total remuneration package

Salary package

Salary package equals cash salary and optional benefits

Total remuneration package

Total remuneration package equals cash salary and optional benefits plus employer superannuation

Download Total Remuneration Package

The total remuneration package for the principal class includes:

  • cash salary
  • the amount paid by the Department as the employer contribution to a statutory superannuation fund or other complying superannuation fund on behalf of the individual
  • any optional benefits the individual may have elected to include in the remuneration package such as a novated lease vehicle

The salary package for the teacher, paraprofessional and education support classes includes:

  • cash salary
  • any optional benefits the individual may have elected to include in the salary package in lieu of salary such as a novated lease vehicle

In addition to the salary package the Department pays the employer contribution to a statutory superannuation fund or other complying superannuation fund on behalf of the individual.

Employer superannuation contribution

The Department is required to make employer superannuation contributions on behalf of employees to either a defined benefits scheme — for example, the Revised Scheme, the New Scheme or the State Employees Retirement Benefit (SERB) Scheme or an accumulation scheme, for example, VicSuper. With the exception of employees in the executive and principal class, the employer superannuation contribution cost is met by the Department in addition to the salary package.

For employees in the executive and principal class, the employer superannuation contribution is deducted from the employee’s total remuneration package as follows:

  • for members of the Revised Scheme the employer's superannuation contribution varies between 7 and 20% depending on the age at first entering a contract of employment in the executive or principal class and age on joining the scheme
  • for members of the New Scheme the employer's superannuation contribution varies between 8 and 14% depending on the employee’s level of contribution and age on first entering a contract of employment in the executive or principal class
  • for members of the SERB Scheme the employer's superannuation contribution is currently 12.6%
  • for members of an accumulation scheme (for example, VicSuper) the employer contribution is determined in accordance with the Superannuation Guarantee (Administration) Act 1992

An employee who is not a member of a statutory superannuation scheme (Revised, New or SERB), may nominate a complying superannuation fund for the purpose of receiving the employer's compulsory contribution. If a superannuation fund is not nominated, the employer's compulsory contribution will be directed to VicSuper as the default fund.

Salary for superannuation purposes (statutory schemes)

With the exception of employees in the executive or principal class, the salary package of an employee who is a member of one of the statutory superannuation schemes (Revised, New or SERB) is their salary for superannuation purposes.

Employees in the principal class who are members of one of the statutory superannuation schemes shall have their salary for superannuation purposes determined as follows:

  • members of the Revised Scheme and the SERB Scheme will have a maximum of 82.3% of their total remuneration package recognised by the Emergency Services and State Super Board as salary for superannuation purposes
  • members of the New Scheme will have a maximum of 90.9% of their total remuneration package recognised by the Emergency Services and State Super Board as salary for superannuation purposes

Packaging

All employees may participate in remuneration or salary packaging that maximises flexibility for individuals to meet their personal and financial needs while at the same time ensure the benefit arrangements comply with relevant taxation legislation and rulings.

The various remuneration or salary packaging benefit options available for employees are explained in detail in the benefit profiles available at SmartsalaryExternal Link .

Remuneration — Teaching Service and salary packaging

Reviewed 25 January 2021

Was this page helpful?