Executive and senior office holders annual remuneration changes

Find information about the guideline rate, superannuation and the Victorian Independent Remuneration Tribunal remuneration bands, for public sector executives (in public service bodies and public entities), appointees to public sector boards and statutory office holders.

News

The Premier has issued the 2025-26 annual adjustment guideline rate of 3 per cent.

On 13 October 2025 the Premier issued a guideline rate of 3 per cent, effective from 1 July 2025.

New remuneration bands for executives in public service bodies and prescribed public entities

On 23 September 2025, the Victorian Independent Remuneration Tribunal made a Determination adjusting the values of the remuneration bands for executives employed in public service bodies and prescribed public entities. The Determination is effective from 1 July 2025. For further information and values of the remuneration bands, please see the Tribunal’s website.

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.

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Is it mandatory to pass on the guideline rate to executives and senior office holders?

No. Employers have a general discretion to increase executive or senior office holder salaries up to the guideline rate, but it is not mandatory.

In determining whether to increase an individual’s salary, employers may wish to consider whether the executive or senior office holder has been appointed to their role, or has received a remuneration increase, within the last six months (i.e. between 1 January to 30 June).

Executives and senior office holders who commenced on or after 1 July of the relevant year are not entitled to receive the guideline rate increase.

What part of the total remuneration package (TRP) does the guideline rate apply to?

Employers may increase the salary component of an executive’s TRP by an amount up to the guideline rate.

The ‘salary component’ of the TRP:

includes all monetary benefits, including any vehicle entitlements and/or fringe benefits tax payable
does not include superannuation.

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).

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How will the guideline rate interact with changes to the superannuation guarantee?

For executives employed on a standard executive contract, where remuneration is expressed as a TRP, employers should establish the new value of an executive’s base salary by applying the guideline rate to the salary component.

The ‘salary component’ of TRP includes all monetary benefits, including any vehicle and/or fringe benefits tax payable. The ‘salary component’ does not include superannuation.

The new superannuation contribution payable should then be calculated on the new base salary component, up to the MSCB.

For executives employed with disaggregated remuneration packages, for example, where remuneration is expressed as salary plus superannuation, the same process will apply.

Both increases are to be made at the cost to the employer.

Can the required superannuation adjustments be offset by the guideline rate or vice versa?

No. As per clause 7.2(a)(B) in the standard executive contracts, employers bear the cost of increases to both the superannuation guarantee and the annual ATO indexation of the MSCB. This means that the application of the guideline rate and either of the required superannuation adjustments (superannuation guarantee rate increase or MSCB indexation) must be calculated separately. Both changes are applicable from 1 July 2025.

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.

Examples

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Executive A: remuneration expressed as TRP, with the current TRP at the base of previous remuneration band

As at 30 June 2025, an SES-1 executive has a TRP at the base of the relevant band, inclusive of 11.5 per cent superannuation and other benefits.
From 1 July 2025, the employer will need to increase the executive’s TRP to the base of the adjusted remuneration band.
The Premier’s guideline rate provides discretion for an employer to pass on an additional increase to the executive, provided the increase to the salary component is no greater than 3 per cent for 2025-26 (that is, capped at the guideline rate).

For this example, the SES-1 executive will not be entitled to receive the guideline rate, as their salary has already been increased by 3 per cent due to the Tribunal’s AA Determination. The superannuation contribution (12 per cent for 2025-26) should then be calculated on the new salary to ensure the employer is complying with the superannuation guarantee.

Value as at 30 June 2025

TRP$ p.a.	Salary$ p.a.	Super$ p.a.
225,000	201,794	23,206

Value as at 1 July 2025

TRP$ p.a.	Salary $ p.a.	Super$ p.a.
232,790	207,848	24,942

Changes

Salary%	Super $p.a.
3%	1,735

Executive B: remuneration expressed as TRP within the relevant remuneration band, with a salary component up to the MSCB

As at 30 June 2025, an SES-1 executive has a TRP of $260,000 inclusive of 11.5 per cent superannuation and other benefits.
From 1 July 2025, the employer will have discretion to pass on up to the value of the guideline rate to the salary component (3 per cent for 2025-26). As the executive’s remuneration is within the adjusted bands, they do not receive an increase due to the Tribunal’s AA Determination.
The legislated increase to the superannuation guarantee (12 per cent for 2025-26) is then applied.

Value as at 30 June 2025

TRP$ p.a.	Salary$ p.a.	Super$ p.a.
260,000	233,184	26,816

Value as at 1 July 2025

TRP$ p.a.	Salary $ p.a.	Super$ p.a.
269,001	240,179	28,822

Changes

Salary%	Super $p.a.
3%	2,006

Executive C: remuneration expressed as TRP within the relevant remuneration band, with a salary component over the MSCB

As at 30 June 2025, an executive is classified at SES-3 level and has a TRP of $500,000 inclusive of 11.5 per cent superannuation and other benefits.
From 1 July 2025, the employer will have discretion to pass on up to the value of the guideline rate to the salary component (3 per cent for 2025-26). As the executive’s remuneration is within the adjusted bands, they do not receive an increase due to the Tribunal’s AA Determination.
From 1 July 2025, the employer will need to pass on the following adjustment to superannuation payable up to the MSCB:

For executives on a TRP greater than $280,000 ($250,000 + 12 per cent superannuation guarantee), the employer’s contributions to superannuation accumulation schemes should be increased by $67.80 (from $29,932.20 in 2024-25 to $30,000 in 2025-26).

Value as at 30 June 2025

TRP$ p.a.	Salary$ p.a.	Super$ p.a.
500,000	470,068	29,932

Value as at 1 July 2025

TRP$ p.a.	Salary $ p.a.	Super$ p.a.
514,170	484,170	30,000

Changes

Salary%	Super $p.a.
3%	68

Executive D: remuneration expressed as salary plus superannuation, paid over the relevant remuneration band, with a salary component over the MSCB

An executive is classified at SES-2 level and has a salary of $400,068 exclusive of 11.5 per cent superannuation and other benefits as at 30 June 2025.
Given this executive is already paid above the maximum of the SES-2 remuneration band, if an employer proposes to pass on the Premier’s guideline rate, they are not required to seek the Tribunal’s advice.
From 1 July 2025, the employer will need to pass on the following adjustment to superannuation payable up to the MSCB:

For executives on a TRP greater than $280,000 ($250,000 + 12 per cent superannuation guarantee), the employer’s contributions to superannuation accumulation schemes should be increased by $67.80 (from $29,932.20 in 2024-25 to $30,000 in 2025-26).

Value as at 30 June 2025

TRP$ p.a.	Salary$ p.a.	Super$ p.a.
430,000	400,068	29,932

Value as at 1 July 2025

TRP$ p.a.	Salary $ p.a.	Super$ p.a.
442,070	412,070	30,000

Changes

Salary%	Super $p.a.
3%	68

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.

The Department of Premier and Cabinet manages executive employment policy including:

the standard employment contracts and handbooks for executives in the Victorian public service and prescribed public entities
executive remuneration policy (including annual remuneration adjustments), and
the executive motor vehicle scheme.

Economic Growth Statement

Executive and senior office holders annual remuneration changes

On this page

News

Overview of annual remuneration changes

The Premier’s annual adjustment guideline rate

Superannuation

The Victorian Independent Remuneration Tribunal’s remuneration bands

Applying the guideline rate, superannuation and remuneration band adjustments

Examples

Value as at 30 June 2025

Value as at 1 July 2025

Changes

Value as at 30 June 2025

Value as at 1 July 2025

Changes

Value as at 30 June 2025

Value as at 1 July 2025

Changes

Value as at 30 June 2025

Value as at 1 July 2025

Changes

Payment Above the Band