• Section 1 - Purpose
• Section 2 - Authority
• Section 3 - Scope
• Section 4 - Procedure
• Salary Rates
• Incremental Progression
• Senior Leadership Remuneration
• Superannuation
• Allowances Overview
• Considerations for Allowance Approval or Review 
• Calculation and Payment
• Allowance Entitlements During Leave
• Performance Requirements
• Section 5 -  Compliance
• Section 6 - Subordinate Documents
• Section 7 - Definitions

Section 1 - Purpose

(1) This procedure establishes the operational framework for the determination and administration of remuneration, including superannuation and allowances, for employees at RMIT University.

(2) Remuneration principles set out in the Employee Lifecycle Policy are implemented through this procedure to ensure that remuneration decisions are fair, equitable, and consistently applied across each Employment Category.

Section 2 - Authority

(3) Authority for this document is established by the Employee Lifecycle Policy. 

Section 3 - Scope

(4) This procedure applies to all employees of RMIT University. It does not apply to employees of RMIT controlled entities.

(5) The application of provisions within this procedure is determined by Employment Category. The procedure includes a range of allowances, each of which is subject to its own eligibility requirements, conditions and approval processes.

Section 4 - Procedure

Salary Rates

(6) Salary rates for employees are outlined in the relevant enterprise agreement and/or the terms and conditions of the employee’s contract of employment. 

Incremental Progression

(7) An employee will normally progress through an incremental salary scale of their classification on the anniversary of their appointment to their current position subject to any provisions detailed in the relevant RMIT enterprise agreement.

(8) A salary increment may be deferred or a demotion applied in accordance with the relevant enterprise agreement due to unsatisfactory performance, misconduct or serious misconduct.

Senior Leadership Remuneration

(9) For RMIT University employees engaged as a Senior, Specialist and Executive Employee (SSEE), Senior Executive, and the Vice-Chancellor, the Remuneration Policy Position and annual remuneration are approved in accordance with the responsibilities set out in the Employee Lifecycle Policy and the Delegations of Authority Policy.

(10) In determining remuneration adjustments, consideration is given to:

1. the defined Remuneration Policy Position for remuneration;
2. the financial position of RMIT;
3. broader external remuneration trends;
4. the external financial environment, including inflation (CPI) and cost-of-living factors; and
5. enterprise agreement increases for non-SSEE employees.

(11) Governance of SSEE, Senior Executives and the Vice-Chancellor's remuneration include the following:

1. remuneration must comply with all relevant legislation and appliable standards;
2. remuneration, including at appointment, out of cycle adjustments, and other remuneration related changes, are managed in accordance with the Delegations of Authority Policy;
3. annual assessment of executive remuneration ranges, considering a broad range of factors, including sector benchmarking;
4. annual review of SSEE remuneration to assess and approve the overall level of remuneration adjustments, subject to eligibility requirements;
5. reporting of Senior Executive and Vice-Chancellor remuneration will be in the form of set remunerations bands unless otherwise required by legislation.

Superannuation

(12) Employer superannuation contributions for all employees are made in accordance with the relevant enterprise agreement, individual employment contracts, and legislative requirements.

(13) Employees may exercise flexibility regarding employer contributions only where permitted under the relevant enterprise agreement, or employment contract, subject to the superannuation fund rules.

Allowances Overview

(14) The allowances available to employees are outlined in Table 1. Certain allowances may not apply to all employee types, such as casual employees, and some are subject to eligibility requirements and/or RMIT’s discretion. General provisions apply unless stated otherwise.

Considerations for Allowance Approval or Review 

(15) When considering the commencement, continuation, or adjustment of an allowance, the factors taken into consideration include:

1. whether the employee is regularly meeting satisfactory performance and behaviour standards;
2. alternative methods of recognition and whether the allowance remains the most appropriate approach;
3. alignment of the allowance with external factors, including market benchmarks and consistency across RMIT for similar positions;
4. when reviewing an allowance, the original rationale and any relevant changes.

Calculation and Payment

(16) Allowances shall be calculated on an annual basis and paid as an equivalent fortnightly amount for the approved period.

(17) Allowances in Table 1 are superannuable and included in the calculation of annual leave loading.

(18) The allowance ceases when the employee no longer performs the relevant duties, no longer holds the position, or where the circumstances or justification under which the allowance was approved no longer apply.

Allowance Entitlements During Leave

(19) Allowances will generally continue during periods of paid leave, provided the allowance remains in effect.

(20) An allowance may cease during extended leave if the circumstances, duties or responsibilities that warranted the allowance are reassigned.

Performance Requirements

(21) Commencement and retention of an allowance is contingent upon satisfactory performance and behaviour, at a minimum.

(22) Where an employee is not meeting the inherent requirements of their position and has commenced a Performance Improvement Plan in accordance with the Performance Improvement Procedure, the allowance shall be subject to immediate review and may be discontinued at RMIT’s discretion.

Table 1 - Allowances. The table below specifies the allowances that may be available to employees, subject to eligibility requirements.

Section 5 -  Compliance

(23) Compliance with this procedure is managed by the Vice President, People and Culture.

(24) The Vice President, People and Culture reports breaches of this procedure on an annual basis to the University Executive Committee.  

(25) Breaches of this procedure are reportable via the Organisational Breach Reporting Form and are managed in accordance with the Compliance Breach Management Procedure.

Section 6 - Subordinate Documents

Section 7 - Definitions