Remuneration for public entity executives is set by government and managed by the Office for Public Sector Executive Remuneration (OPSER). VPSC provides advice and support on employment matters.
OPSER was established in 2018 to administer the Government’s policy for executive remuneration in public entities.
OPSER is a business unit of the Department of Premier and Cabinet. Read more about the Office at www.vic.gov.au/public-sector-executive-remuneration.html
Public Entity Executive Remuneration Policy
The Government’s Public Entity Executive Remuneration Policy (the Policy) sets out the remuneration approval framework and processes for senior executive appointments and reappointments in specified public entities.
The Policy provides boards of public entities with practical information about making a submission to OPSER for approval of remuneration.
The Policy also sets out five key principles to guide decision-making. These are that executive remuneration should:
- be fair and reasonable
- consider entity performance as well as broader Victorian fiscal and economic conditions
- be competitive
- reflect the non-financial benefits of public sector employment
- be consistent and understandable to both executives and the general public.
To assist boards in the management of executive employment, a Standard Executive Contract for Public Entity Executives has been developed. While use of the contract is not required, it contains the essential policy elements for executive employment and closely follows the public service model.
Public Sector Executive employment survey
VPSC conducts an annual survey on public sector executive employment as part of its ongoing Workforce Data Collection responsibilities. Public entities are required to participate in the survey, reporting on the total remuneration packages and other key information of individuals covered by the Policy.
It is important that correct classification of staff occurs before reporting. Correct classification provides assurance and supports:
- disclosure through accurate reporting in the data collection and in entities’ Annual Reports
- executives being subject to appropriate employment terms and conditions as set out in the Policy and the recommended standard contract
- broader Policy compliance.