Massive pay win for Victoria’s most highly paid public servants

Victoria’s most highly paid public servants have scored huge pay rises of up to 4.5 per cent, with even the lowest-ranked executives boosting their annual salaries by thousands of dollars.

Victoria’s top paid public servants have scored massive pay rises with salary guidelines to be lifted by up to 4.5 per cent.

A day after Victorian MPs were awarded a 3.5 per cent pay bump, the Victorian Independent Remuneration Tribunal announced pay rises of up to 4.5 per cent of the state’s 1600 executives.

In a statement of reasons the tribunal claimed increased public scrutiny had led to challenges recruiting people to serve in senior Victorian Public Service roles.

The changes mean the lowest ranked senior executive would earn at least $225,000, an increase of $8624.

Department heads and commissioners can now be paid between $603,713 and $813,524, taking home at least an extra $25,997 annually.

Similar to politicians, senior executives have a base salary and maximum price which are set by the tribunal every year.

The government can also make special applications to pay some executives above the limit, which it routinely does for agencies running its major projects.

Premier Jacinta Allan’s pay will rise to almost $500,000. Picture: Getty Images

In its ruling the tribunal said current executive remuneration had fallen below comparative roles while real wages for executives had declined by 7.1 per cent over the past four years.

But it appeared to pre-empt a public backlash over the significant pay increases.

“In making this decision — and indeed all decisions — the tribunal did so having weighed the impact that its decision may have on the level of trust between the community and the VPS if increases in remuneration for senior public servants are perceived as out of step with community standards and expectations and prevailing economic conditions,” it said.

A significant reason given for the pay rise included the changing nature of executive roles and great public scrutiny.

“There is compelling evidence of a significant change in the role of executives since the tribunal’s first Determination four years ago,” the ruling said.

“While core responsibilities have more or less remained constant, workload, complexity and public scrutiny associated with the role have all increased.

“While workload might suggest solutions other than remuneration, the latter two — and in particular public scrutiny — bear directly on considerations for setting remuneration bands.

“Information provided to the Tribunal suggests that the shift in public scrutiny has been towards personal targeting and the introduction of a political dimension and a level of aggressiveness not evident in the past.

The lowest-ranked senior executive will earn at least $225,000. Picture: Getty Images

“The resultant increased risk of reputational damage, together with a limited capacity to respond and an associated damage to employment prospects, has had a significant impact on the number of people willing to serve in senior roles in the VPS.”

Tribunal chair Warren McCann said the changes factored in Commonwealth Government changes to statutory superannuation entitlements.

Mr McCann defended the decision saying while workload and public scrutiny had increased for executives, higher pay was needed to attract the best people.

“It is important for Victorian Public Service bodies to be able to offer competitive remuneration packages in order to attract and retain high calibre executives,” he said.

In January the Herald Sun revealed executives working on Victoria’s most expensive road project, the North East Link, were being paid super-sized salaries despite a $10bn cost blowout.

It included a huge $527,553 annual salary for a principal project specialist – $126,446 more than the position’s remuneration band.

Another senior director was being paid more than $50,000 a year above the set limit, while a third design specialist will take home $10,000 more than the official salary cap.

The tribunal on Monday released its annual determination on MPs’ pay, ruling a 3.5 per cent increase from July 1.

It means their base salaries will increase from $198,839 to $205,798 — adding $890,752 to the annual bill for the state’s 128 parliamentarians.

The tribunal also increased the expense allowance for eligible specified parliamentary office holders by 3.5 per cent.

It brings Premier Jacinta Allan’s pay to almost $500,000, made up of $435,427 in salary and up to $62,597 in expense allowances.