• Section 1 - Purpose
• Scope
• Section 2 - Policy
• Principles
• Part A - Gender Pay Equity
• Part B - Appointment and Negotiations
• Part C - Increments and progression
• Job reclassification
• Senior Staff and Executive Group Staff remuneration Review
• Part D - Superannuation
• Part E - Allowances and salary loadings 
• Eligibility
• Loading Parameters
• Review
• Approvals
• Leave and Superannuation
• Responsibility allowance
• Part F -  Roles and Responsibilities
• Compliance and Breaches
• Section 3 - Procedures
• Section 4 - Definitions

Section 1 - Purpose

(1) This Policy sets out the University’s approach to remunerating staff. It outlines the steps the University will take to ensure decision making is transparent, equitable, legally compliant, ethical and financially sustainable and will support the University’s commitment to reducing the gender pay gap. The Policy also sets out accountabilities and responsibilities in ensuring transparency and equity in remuneration. 

(2) The University remunerates staff in accordance with legislative requirements, University policy and Macquarie University Enterprise Agreements in place from time to time.

(3) Remuneration includes salary, loading, allowances, superannuation and other financial benefits.

Scope

(4) This Policy applies to all staff employed by Macquarie University (the University).

(5) This Policy does not apply to staff employed by Controlled Entities of the University.

Section 2 - Policy

Principles

(6) The University aims to attract and retain high quality staff and maintain a high-performance workplace culture by offering competitive and flexible remuneration that is equitable to all staff and has appropriate transparency in its application.

(7) Remuneration equity will be based on equal remuneration for work of equal or comparable value based on the classification of positions.

(8) Remuneration decisions will comply with relevant legislation, industrial requirements and obligations and be consistent with the University’s commitment to ethical financial stewardship of publicly funded resources.

(9) Remuneration decisions and approval, as required, should consider relevant industry benchmarks and, internal relativities and take into account the University’s size, complexity and leadership responsibility,

(10) Where it is recognised that there is a need for remuneration flexibility that recognises and rewards the high performance of staff contributing to the overall success of the University, or is required for competitiveness in the market to attract appropriate candidates, offers will be made in accordance with relevant policies and delegated authority. Outcomes will be transparent to Executive Group members to enable oversight of pay equity across the University.

Part A - Gender Pay Equity

(11) The University is committed to reducing and eliminating the gender pay gap. Human Resources will undertake an annual review and report to the Executive Group including an analysis of organisational-wide gaps, like-for-like gaps and by-level gaps. This will include an analysis of annualised salaries, commencement salaries and salary loadings. Gaps identified through this analysis that cannot be justified will be reviewed and an action plan developed to address the gap over an approved period of time. The pay equity review by Human Resources will endeavour to analyse the pay gap not only by gender, but over time also by other demographic groups including cultural diversity and age.

(12) The Executive Group will review identified gaps and will approve action plans (including targets and measures) to reduce any inequities identified. Progress against action plans will be assessed and reported to the Executive Group annually.

Part B - Appointment and Negotiations

(13) The appropriate academic level, HEW Level or teacher level for each position will be established prior to advertisement consistent with the Professional Staff Position Classification Descriptors,the Minimum Standards for Academic Levels, the teaching Staff definitions or for senior staff (inclusive of executive) positions through an approved job evaluation methodology. HEW Levels, Academic Levels and teacher Levels are outlined in the relevant Macquarie University Enterprise Agreement.

(14) On appointment, salaries will normally be set at the first step of the relevant salary scale, except:

(15) A Hiring Manager may request prior written approval for a remuneration range above the relevant salary scale from the Chief People Officer. If approved, the position may be advertised at a specified remuneration range or may indicate that remuneration will be negotiable.

Part C - Increments and progression

(16) Subject to satisfactory performance, on completion of each twelve months continuous service, staff (other than staff employed on a casual basis) will automatically progress to the next salary step within the classification, until they reach the maximum step within the relevant Academic Level or Professional HEW Level. Salary scales and the annual increments are outlined in the relevant Macquarie University Enterprise Agreement.

(17) Where a staff member has consistently exceeded the required level of competency for a single salary increment, the Executive Dean or Head (Function Head or Faculty Executive Director) may approve accelerated progression to a higher step within the staff member’s current salary classification.

(18) If the staff member is at the maximum step for their classification and is consistently exceeding the required level of competency, then the Executive Dean or Head (Function Head or Faculty Executive Director) may recommend an additional payment in accordance with Part E – Allowances and Loadings of this Policy.    

(19) Pay equity will be considered in the context of decisions in relation to accelerated progression and salary loadings.

(20) On successfully achieving promotion under the Academic Promotion Process, academics will be appointed at the first step of the higher Academic Level.   

Job reclassification

(21) Requests for job reclassification will be conducted in accordance with the relevant Macquarie University Enterprise Agreement.

Senior Staff and Executive Group Staff remuneration Review

(22) Reviews of senior staff and executive group staff remuneration will be conducted in accordance with contracts of employment and decisions of the relevant committee of Council. A remuneration increase for senior staff and executive group staff are generally conducted on an annual basis and are subject to meeting performance expectations in relation to pre-agreed, measurable outcomes aligned with the University’s strategy.

(23) The proposed Senior Staff (non-Executive Group) annual total remuneration increase is prepared and submitted by the Chief People Officer and recommended for approval to the Nominations and Remuneration Committee of Council, by the Vice-Chancellor. The submission includes references to Macquarie University Enterprise Agreement salary increases, Wage Price Index movements and inflation/CPI over the preceding year.

(24) The proposed Executive Group annual total remuneration increase is prepared and submitted by the Chief People Officer and recommended for approval to the Nominations and Remuneration Committee of Council by the Vice-Chancellor.  The submission includes external position benchmarking using the annual Mercer University remuneration Review, internal relativities, and Macquarie University Enterprise Agreement salary increases.

Part D - Superannuation

(25) Superannuation will be paid in accordance with superannuation legislation in place from time to time and provisions as outlined in the Macquarie University Enterprise Agreements.

Part E - Allowances and salary loadings 

(26) The University is committed to attracting and retaining high quality staff and rewarding outstanding staff performance. Flexible remuneration using salary loadings and responsibility allowances assists in achieving this goal.

(27) The University may also pay a range of allowances to eligible staff as outlined in the Macquarie University Enterprise Agreements.

Eligibility

(28) A salary loading may be considered when:

1. there are demonstrable difficulties in attracting and retaining suitably qualified staff to a discipline/specialist position;
2. there is a risk of significant turnover of staff in a discipline/specialist area;
3. a staff member is performing at an outstanding level; or
4. a staff member has skills that are highly sought after in the market.

(29) Salary loadings will apply to:

1. Academic Staff; and
2. Professional Staff positions normally at HEW Level 9 and above.

(30) Exceptions will require justification and the approval of the Chief People Officer.

(31) Salary loadings may be either:

1. negotiated as part of an offer of employment; or
2. recommended by an Executive Dean/Head of Office during employment.

(32) Salary loadings are to be accompanied by documented evidence that supports the case for payment of a salary loading.

Loading Parameters

(33) Human Resources, in consultation with the relevant Executive Group member, will establish loading parameters. Loading parameters will be determined on the basis of the level at which salaries for particular disciplines are being sustained in comparison with the market. Executive Deans/Heads of Offices will recommend salary loadings for individual staff within these parameters.

(34) The salary loading will be adjusted to take into account any promotion or reclassification.

(35) A salary loading may be paid as a percentage or a fixed dollar amount (whole number).

Review

(36) A review of salary loadings will normally be undertaken annually or biennially and consider:

1. salary surveys and other available market data;
2. the recipient’s Development, Performance and Review;
3. the continued applicability of a salary loading; and
4. the applicability of a salary loading in the event that a staff member is promoted or appointed to a position with a higher classification.

Approvals

Setting a salary loading

(37) The setting of a salary loading for an Academic or Professional staff member requires the approval of the Chief People Officer.

Renewing a salary loading

(38) The renewal of a salary loading where the salary loading remains the same or is reduced, or the cessation of a salary loading, requires the approval of the Executive Dean/Head of Office.

Increasing a salary loading

(39) The increase of a salary loading requires the approval of the Chief People Officer.

Leave and Superannuation

(40) Salary loadings will:

1. be paid on accrued annual leave that is taken during service;
2. be paid on long service leave taken during service, but this will be funded from Faculty/Office budgets; and
3. not be paid on accrued annual leave or long service leave taken on resignation, retirement or termination.

(41) Superannuation is paid on salary loadings and allowances where that is required by legislation or an entitlement under the relevant Macquarie University Enterprise Agreement.

Responsibility allowance

Eligibility

(42) A responsibility allowance will be considered when:

1. a staff member is performing additional responsibilities beyond those expected at their current level of appointment; and
2. there is no feasible or allowable Higher Duties Allowance.

(43) Additional responsibilities may include, but are not limited to:

1. project work; or
2. performing a proportion of duties of another position which is classified at the same level as the staff member’s substantive position.

Duration

(44) A responsibility allowance will be approved for up to six (6) months. It is generally only approved once and is not appropriate for an ongoing need greater than six (6) months.

Value

(45) The amount allocated for a responsibility allowance will depend upon the additional responsibilities required. As a guide, responsibility allowances will be no greater than 5% of one (1) year's base salary.

Review

(46) The additional responsibilities and allowance may be increased, decreased or withdrawn during the period following consultation with the staff member.

Approvals

(47) Responsibility allowances require the approval of the Chief People Officer.

Salary and Leave

(48) Only one (1) responsibility allowance will be paid to a staff member at any one time.

(49) A responsibility allowance will be paid as a percentage of base salary (normally as a whole number, e.g. 5% of base salary)

(50) A responsibility allowance may be absorbed into the new level of remuneration if the recipient’s substantive position is reclassified to a higher level (in the case of Professional Staff) or the recipient is promoted (in the case of Academic Staff).

(51) A staff member who receives a responsibility allowance for a period in excess of 20 working days will receive the allowance for paid leave taken during the period of the responsibility allowance.

Part F -  Roles and Responsibilities

(52) Remuneration offers will be made in accordance with the University’s Delegations of Authority Register.

(53) Members of the Executive Group are responsible for monitoring and addressing pay inequities identified within their faculty or Portfolio.

(54) The Chief People Officer is responsible for undertaking annual reviews of remuneration to identify inequities or inconsistencies. This includes an analysis of the gender pay gap.

Compliance and Breaches

(55) The University may commence applicable disciplinary procedures if a person to whom this Policy applies breaches this Policy (or any of its related procedures).

Section 3 - Procedures

(56) Nil.

Section 4 - Definitions

(57) Nil.