Remunerating Defence’s people

Defence remuneration is underpinned by a legal framework that provides separate mechanisms for setting pay and conditions for ADF members and Defence APS employees. The main legislation relevant to remuneration in Defence is the Defence Act 1903, Fair Work Act 2009 and the Public Service Act 1999.

The independent Defence Force Remuneration Tribunal is responsible for setting pay and pay-related allowances for members of the ADF. Other financial conditions of service that recognise the special characteristics of service are determined by the Minister for Defence under section 58B of the Defence Act 1903.

Defence non-SES APS employees are covered by a collective agreement. Some non-SES positions have remuneration supplemented by public service determinations or set by Australian workplace agreements. SES employees have remuneration and conditions of service set by contract, public service determinations or Australian workplace agreements. Star rank officers’ remuneration and conditions of service are set by the Star Ranks Remuneration Arrangement.

Main features of Defence workplace arrangements and agreements

Both the ADF and Defence APS employee workplace arrangements and agreements present a package of pay and conditions which include a values-based employment framework, flexible working and leave arrangements. Defence workplace arrangements and agreements recognise the importance of recruiting and retaining the best people.

Table A7.16 Defence APS base salary ranges by classification as at 30 June 2009
Salary Range ($)
Classification Minimum Maximum
Individual arrangements[1]
SES Band 3[2] 222,548 305,100
SES Band 2[3] 150,325 210,351
SES Band 1 124,348 148,754
Non-SES 53,622 163,130
Collective Agreement[4]
Executive Level 2 95,511 151,442[5]
Executive Level 1 82,809 101,402[6]
APS Level 6 65,520 77,103[7]
APS Level 5 59,807 64,062[8]
APS Level 4 53,622 58,864
APS Level 3 48,112 52,572
APS Level 2 42,239 47,484[9]
APS Level 1 37,323 41,896

Notes:

  1. SES and non-SES individual arrangements salary ranges exclude the DMO.
  2. Includes rates for Chief of Division 3.
  3. Includes rates for Chief of Division 2 and Medical Officer Class 6.
  4. Certified Agreement salary ranges also apply to APS employees in the DMO.
  5. Includes rates for Academic, Legal and Science specialist structures.
  6. Includes rates for Public Affairs and Legal specialist structures.
  7. Includes rates for Public Affairs specialist structures.
  8. Includes rates for Registered Nurse and Occupational Health Nurse specialist structures.
  9. Includes rates for Enrolled Nurse specialist structures.
Table A7.17 ADF salary ranges as at 30 June 2009
Salary Range ($)
Classification Minimum Maximum
Officer of the Permanent Force (Equivalent)
General (E)[1] 312,840[2] 312,840[2]
Lieutenant General (E) 242,510[2] 250,100[2]
Major General (E) 189,138 208,052
Brigadier (E) 127,430[7] 184,226
Colonel (E) 113,727[7] 165,058[4]
Lieutenant Colonel (E) 92,383[7] 155,262[3]
Major (E) 70,025 139,584[3]
Captain (E) 54,844 135,068[3]
Lieutenant (E) 45,592 95,569[5]
2nd Lieutenant (E) 42,597 89,217[5]
Other rank of the Permanent Force (Equivalent)
Warrant Officer Class 1 (E) 62,105 102,244[6]
Warrant Officer Class 2 (E) 57,202 88,570
Staff Sergeant (E) 55,283 85,444
Sergeant (E) 49,430 81,715
Corporal (E) 42,714 74,722
Lance Corporal (E) 39,290 69,452
Private Proficient (E) 38,479 68,641
Private (E) 37,684 67,846

Notes

  1. (E) is ‘equivalent rank’ across the Services.
  2. General (E) and some Lieutenant General (E) rates are set by the Remuneration Tribunal.
  3. Includes rates for Medical Officers on specialist structure.
  4. Includes rates for Dental Officers on specialist structure.
  5. Includes transitional rates for other rank appointed as officer.
  6. Includes rates for Service Warrant Officer.
  7. Includes rates for Chaplains on specialist structure.
Table A7.18 Defence Workplace Agreements and Arrangements as at 30 June 2009
SES Non SES
Civilian[1][2]
APS employees covered by Collective Agreement - 15,129
APS employees covered by individual arrangements 122[3] 49
Statutory office holder[4] 1 -
Australian Defence Force[5] Star Rank[6] Non-Star Rank[7]
Members covered by ADF Workplace Remuneration Arrangement[8] - 80,939
Members covered by Star Ranks Remuneration Arrangement 157 -
Specialist Officer Salary Structure - Chaplains 3 -
ADF Statutory Office Holders 7 -

Notes

  1. Excludes the Secretary who is appointed by the Prime Minister.
  2. Excludes DMO civilian employees.
  3. Includes one SES Band 1 officer on temporary transfer to another agency, noting that he still has an active agreement with Defence.
  4. Statutory office holders not included in headcount figures in previous tables.
  5. Includes ADF members billeted to the DMO.
  6. Star rank numbers reflect permanent personnel only.
  7. Includes ADF Permanent Force and Reservists up to the rank of COL (E).
  8. Includes ADF Permanent Force. Figures do not include those Members covered by the Specialist Officer Salary Structure.
Table A7.19 Defence performance pay[1][2][3]
Level
(Substantive)
Staff
eligible[4]
Number of
staff paid
Aggregated
Amount paid
$
Average
payment
$
Range

$
APS Trainee 2 2 1,000 500 500-500
APS Level 1 195 192 92,858 484 133-500
APS Level 1-3 22 11 5,481 498 367-526
APS Level 2 1,012 947 445,233 470 52-526
APS Level 3 1,045 815 393,725 483 127-526
APS Level 3-4 102 95 49,734 524 65-571
APS Level 3 - EL1 (Legal) 15 9 8,852 984 984-984
APS Level 4 727 546 297,171 544 102-589
APS Level 4-5 327 275 161,594 588 70-621
APS Level 4-6 33 49 31,648 646 247-726
APS Level 5 1,458 1,061 644,173 607 52-726
APS Level 5-6 7 5 3,630 726 726-726
APS Level 6 1,870 1,544 1,086,252 704 102-749
APS 6 - EL1 (Academic) 20 15 13,151 877 467-906
Executive Level 1 1,331 1,192 955,033 801 80-1,300
Executive Level 2[5] 899 798 893,071 1,119 133-2,188
Total 9,065 7,556 5,082,606 673 52-2,188

Notes

  1. Subject to performance, employees may be entitled to a higher pay point within the salary band for their classification. This salary advancement is not considered performance pay. An employee whose employment conditions are governed by the DeCA and who is at the top of his or her classification’s salary band may, subject to performance, receive a lump sum payment of the greater of $500 or one per cent of his or her rate of pay (adjusted for part-time hours, if applicable). As this lump sum payment does not affect the employee’s nominal salary, it is considered performance pay.
  2. The data in this table represents employees who were paid performance pay at any point during 2008-09. The DMO’s APS performance pay is reported separately in Volume 2 of this report.
  3. Under the DeCA, employees who were within one per cent of the top of their salary range were eligible to receive a combination of performance progression (increase in rate of salary) and the top of range lump sum payment. Their salary was increased until it reached the top of the range, and the bonus described in footnote 1 was paid, reduced by the dollar amount of salary increase.
  4. For reporting purposes, employees who were on the top of their salary range as at 31 October 2008 are considered to have been eligible for the top of range lump sum payment. This eligibility data does not include those employees who received the combination of a salary increase and a lump sum payment as described in note 3. The eligibility data does not include those employees who are at the top of the lower classification within a broadband. For this reason, the numbers of employees in the table above who received the bonus in some classifications is greater than the number who appear to have been eligible.
  5. Medical Officer grades have been included in the EL2 classification.
Table A7.20 Non-salary benefits as at 30 June 2009[1][2]
All non SES employees could access the following benefits: Employee assistance program
Flexible remuneration packaging
Learning and development
Transition management services, including financial advice
Flexible working arrangements including home-based and part-time work
Subject to availability, eligibility criteria and operational requirements, employees could also access: Defence-supported child care
Study assistance
Defence amenities
Dependant care costs
Time off for long business travel
Mobile phone for official use
Family care rooms
Airline lounge membership
Home office equipment
Under individual remuneration arrangements, SES staff could access all the above benefits, together with the following benefits: Motor vehicle for official and private use, plus fuel
Professional memberships
Financial advice on remuneration and conditions of service
Home office equipment
Parking
ADF Non-Star Rank members could access the following benefits: Flexible remuneration packaging
Learning and development
Medical and dental treatment
Pharmaceuticals
Housing and accommodation benefits
Transition management services, including financial advice
Subject to availability, eligibility criteria and operational requirements, ADF non-Star Rank members could also access: Defence supported child care
Study assistance
Defence amenities
Dependant Care costs
Time off for long business travel
Mobile phone for official use
Family care rooms
Airline lounge membership
Home office equipment
ADF Star Rank members could access all the above benefits, together with the following benefits: Motor vehicle for official and private use, plus fuel
Parking
Professional memberships
Financial advice on remuneration and conditions of service
Home office equipment

Notes

  1. Non-salary benefits are dependent upon eligibility criteria and may not be available to all employees.
  2. Excludes Senior Executive Staff and non-Senior Executive Staff employees on Australian Workplace Agreements or determinations made under Section 24(1) of the Public Service Act 1999 in the DMO.