Executive and senior office holders annual remuneration changes

Overview of annual remuneration changes

There are a number of remuneration increases that may apply to executives and senior office holders each year, including:

• The Premier’s annual remuneration adjustment guideline rate
• Changes to the superannuation guarantee
• Changes to the remuneration bands set by the Victorian Independent Remuneration Tribunal

Public service and public entity employers are responsible for funding remuneration increases for the guideline rate, superannuation changes and any increases in remuneration resulting from the Victorian Independent Remuneration Tribunal’s adjustments to the remuneration bands.

Any public sector employer experiencing financial difficulty in funding these increases should raise the matter with their portfolio department.

Employers should ensure that payroll providers process the remuneration increases as soon as reasonably practicable during the 2025-26 financial year.

Individual executives or senior office holders are not required to take further action, unless otherwise advised by their employer or relevant department.

The Premier’s annual adjustment guideline rate

The Premier’s annual remuneration adjustment guideline rate is a salary increase that employers may pass onto executives and senior office holders. It is also known as the ‘guideline rate’.

Employers may increase executive and senior office holder salaries up to the guideline rate. The guideline rate applies from 1 July each year.

The guideline rate applies to public sector executives, statutory office holders, and public sector board members.

Public sector executives: Departments and public entities should decide whether executives will receive the guideline rate and communicate this decision to each executive and their payroll provider.

Statutory office holders: Departments should support their Ministers to advise their portfolio entities about the guideline rate and ensure that it is passed onto statutory office holders in their portfolio.

Board appointees: An updated version of the remuneration schedules contained in the Appointment and remuneration guidelines will be published to pass on the guideline rate to board appointees. DPC will also notify those within departments responsible for board appointments on how the guideline rate will be passed on to board appointees.

Superannuation

Employers are legally required to make compulsory superannuation contributions into an employee’s accumulation fund, expressed as a percentage of the employee’s ordinary time earnings, in accordance with the Superannuation Guarantee (Administration) Act 1992 (Cth). This is called the ‘superannuation guarantee’.

The compulsory superannuation contribution was 11.5 per cent for 2024-25 and has increased to 12 per cent of an employee’s ordinary time earnings for 2025-26, applicable from 1 July 2025.

The maximum superannuation contribution base (MSCB) is the maximum individual employee earnings on which an employer is required to pay the superannuation guarantee. Employers are not required to pay the superannuation guarantee on earnings above the MSCB. For employees earning below the MSCB, the employer is required to pay the superannuation guarantee on their total ordinary time earnings.

The ATO indexes the MSCB each year. The amount of superannuation payable for executives who are members of superannuation accumulation schemes may increase each year as a result of this indexation.

For 2025-26, the ATO has set the MSCB at $250,000 per annum.

This means that employees on a TRP greater than $280,000 ($250,000 + 12% superannuation guarantee) are entitled to $30,000 of employer contributions to their superannuation accumulation scheme. This is a $67.80 increase to the employer superannuation contribution in 2024-25.

The superannuation guarantee and MSCB do not apply to employees who are members of defined benefits schemes (such as the Emergency Services and State Super Defined Benefits Scheme).

The Victorian Independent Remuneration Tribunal’s remuneration bands

The value of remuneration bands for executives employed in public service bodies and prescribed public entities are set by the Tribunal.

The Tribunal regularly reviews the executive remuneration bands and makes Determinations setting new remuneration bands, which are published on its website.

An executive whose remuneration drops below the base of the band following a Determination made by the Tribunal must have their remuneration increased to the base of the new band in accordance with:

• section 25(4)(a) of the Public Administration Act 2004 for executive employed in public service bodies
• paragraph 5.1 of the PEER Policy for executives employed by public entities.

These requirements apply even if an executive's remuneration was increased following the publication of the guideline rate.

Employers are responsible for implementing required changes to an executive's remuneration due to a change in the remuneration bands. Changes in remuneration due to the Tribunal's Determination must be consistent with the Determination's effective date, which may require backdating changes. These changes should be implemented by employers in a timely manner.

For further information, please see the Tribunal’s website.

The Tribunal’s remuneration bands do not apply to statutory office holders or public sector board members as they are not within the scope of the Tribunal’s jurisdiction.

Please see the Tribunal’s website for further information on remuneration bands for executives employed in public service bodies and remuneration bands for executives in prescribed public entities.

Applying the guideline rate, superannuation and remuneration band adjustments

The example calculations below may assist HR practitioners in applying remuneration and superannuation adjustments for 2025-26.

Please note, these calculations are examples only. HR practitioners and payroll providers should consider how the adjustments apply to each individual circumstance.

Payment Above the Band

• Please note, the Tribunal has provided a policy statement on its website about seeking the Tribunal’s advice to apply the guideline rate to an executive’s salary.
• Further information on how to request the Tribunal’s advice is available on the Tribunal’s website.