The Directorate of Military Salary and Allowances – Policy (DMSA-P) is a part of Personnel Policy and Employment Conditions (PPEC) Branch in the People Strategies and Policy Group. The role of DMSA-P is to develop and maintain pay structures for the ADF, categorise ADF work and manage its placement in the pay structures, develop and maintain salary related allowances and develop and maintain industrial policy. It is responsible for the development and implementation of the ADF workplace remuneration arrangements.
The Defence Force Remuneration Tribunal (DFRT) is an independent body responsible for the determination of military salary and allowances including the industrial pay arrangements. The Tribunal consist of 3 members and one member must be a person who has been a member of the Defence Force. The DFRT operates under the authority of Section 58H of the Defence Act 1903 and is responsible for approving the ADF WRA.
The Department of Education, Employment and Workplace Relations (DEEWR) is the Government department responsible for the industrial relations policies on behalf of the Commonwealth Government. DEEWR represents the Commonwealth Government in cases being considered by the DFRT.
The Chief of the Defence Force represents the members of the ADF in the development of the WRA and its consideration by the DFRT.
The ADF Workplace Remuneration Arrangement is the means by which ADF members receive across-the-board pay rises over a specified period (usually 2 – 3 years) in return for improvements in productivity and efficiency. The WRA is confined to pay and pay related allowances only. In other words, those remuneration matters that fall under the jurisdiction of the DFRT.
Remuneration continues to be the major component of the ADF’s compelling employment offer. ADF salaries must attract and retain the right people in a highly competitive market place, if personnel capability is to be maintained and developed in accordance with White Paper work force targets and ongoing operational requirements. In accordance with Government wage setting policy, the Arrangement highlights the importance of Defence objectives, reforms and productivity measures, to ensure that capability is developed in the most efficient and effective manner possible.
Together, these factors provide the rationale and justification for the across-the-board pay rises in the proposal. The WRA forms part of a strategic approach to personnel capability.
All other conditions of service applicable to ADF members are contained in the ADF Pay and Conditions Manual, Version Two. This can be accessed via the DEFWEB at http://www.defence.gov.au/dpe/pac/ or Internet at HTTP://WWW.DEFENCE.GOV.AU/DPE/PAC/
The WRA applies to all ADF members up to and including the rank of Colonel (E).
The Government requires pay rises for ADF members to follow the same general pay setting principles that apply to the wider community. Pay hasn’t been tied to increases in inflation for more than a decade.
Pay rises are not an automatic right: they must be earned. The aim for the ADF is to have a fair and equitable process that recognises the limitations imposed by the special nature of ADF service. There’s no union, you can’t strike and are subject to military discipline. It’s simply a process that recognises the contribution of the work force to increases in the productivity, efficiency and performance of an organisation.
The WRA is a two year arrangement: 4 November 2009 – 3 November 2011.
No conditions of service offsets were considered for the WRA 2009-11.
The WRA 2009-11 will deliver 6.2% over the 2 year arrangement, delivered by 2 instalments on:
This equates to 3.1% increase per year over the 2 year arrangement.
Pay, allowances and other conditions of service together make up the total ADF employment package. The WRA deals with ADF pay and related allowances that come within the jurisdiction of the DFRT while other conditions of service such as deployment allowances, domestic allowances, leave and housing sit outside the WRA under the jurisdiction of the Minister for Defence. The WRA, therefore, does not stand alone. It complements the existing detailed policy framework for ADF conditions of service and employment under the defence act. The ADF arrangement concentrates on the strategic issues of productivity, reform and remuneration.
The Defence Enterprise Collective Agreement (DECA) is the primary document that delivers salary, allowance and all conditions of service applicable to Australian Public Service (APS) members of the Department of Defence. It basically covers everything, both across-the-board pay rises and conditions of service and employment. Some aspects are comparable to the ADF, some are not.
The DECA is the equivalent document of the WRA but is for Australian Public Service members of the Department of Defence. The DECA stipulates all the conditions of service and pay details for the period of their Agreement. The WRA only delivers the across-the-board pay rises to ADF members for the life of the Arrangement.
Historically, comparable pay outcomes have been a principle of ADF and APS arrangements in Defence. Efficiency and productivity increases are considered holistically across Defence, and not separated between the APS and ADF portions. This has the effect of comparable savings on which to quantify pay outcomes for both the civilian and uniformed members of Defence as an integrated organisation.
Unlike the DECA, ADF conditions of service can be adjusted as required. The DECA locks in conditions of service for the life of that Agreement.
The Defence Act 1903 Section 58B empowers the Minister for Defence, and through him his delegates, the authority to develop, monitor and review conditions of service to meet the needs of the ADF. If these were contained in the WRA, the CDF would not be able to seek changes in conditions of service until the expiry of the agreement.
By continually monitoring ADF conditions of service, the CDF is better equipped to adjust conditions of service to meet the changing needs of the ADF
Housing contributions do not fall under the WRA considerations. They are reviewed separately. In general terms, while housing costs under the ADF scheme are adjusted in line with movement in the market value of Defence housing, member contributions overall remain heavily subsidised (around 50%) compared to community rents, for participating ADF members.
Members of the ADF do not have the right to vote because such a vote would be inconsistent with the power of senior leaders to command the ADF. Under the provisions of Defence Personnel Regulations, members of the ADF are not considered ‘employees’ in the same manner as other employees in the Australian workforce. You do not enter into a work contract like your civilian colleagues. Therefore you are not bound by the Fair Work Act 2009, which provides APS employees with a right to vote
However, for the WRA to be approved by the DFRT, the ADF must demonstrate that it has the support of the majority of ADF members.
The WRA only considers an increase in salary and salary related allowances. The DECA contains all of the conditions for APS which includes leave. Leave is a non-pay related condition of service and therefore it is not included or examined in the WRA
No. The WRA is not examining the rolling in of service allowance or uniform allowance into salary.
Pay rises are linked to productivity, which is expected to progressively increase over time. Delivering progressive increments spread out over the term of the WRA enables the ADF to be paid as we deliver the productivity. If we received a single pay rise after the full productivity was realised, then ADF members would be waiting a long period of time before seeing any pay rise
Last updated: 4 November 2009