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Remuneration and Benefits Procedure - Salary Loadings

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Section 1 - Key Information

Policy Type and Approval Body Administrative – Vice-Chancellor
Accountable Executive – Policy Chief Operating Officer
Responsible Manager – Policy Chief People Officer
Review Date 19 March 2029
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Section 2 - Purpose

(1) Salary loadings are sometimes required to be paid in addition to base salaries stipulated under the Enterprise Agreement to ensure the University remains competitive in acquiring and maintaining the expertise required to meet organisational needs.

(2) This Procedure provides a framework to assist University managers in determining appropriate salary loadings and direction on the required approval levels.

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Section 3 - Scope

(3) This Procedure applies to all fixed term and continuing University staff who are covered by the Enterprise Agreement 2023 receiving, recommending or approving the payment of salary loadings including; attraction, retention, responsibility and market loadings.

(4) This procedure does not apply to higher duties allowance (see Higher Duties Policy) or Academic allowances detailed in the Remuneration and Benefits Procedure - Academic Leadership Allowances.

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Section 4 - Key Decisions

Key Decisions  Role
Approves a salary loading for professional staff  Senior Executive Group (SEG) member 
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Section 5 - Policy Statement

(5) This procedure forms part of the Remuneration Policy suite which governs its application.

(6) Remuneration and Benefits Policy

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Section 6 - Procedures

Part A - Roles and Responsibilities

Role Responsibilities
Supervisor / Manager of position
Determine appropriate type and amount of loading guided by this Procedure and if required, advice from the Talent Acquisition and Remuneration (TA&R) team.
Prepare and submit required loading request for approval, including rationale for the recommendation and consideration of the impact on the University’s gender pay gap.
Do not discuss with staff member until written approval and endorsement has been received from TA&R team.
Talent Acquisition and Remuneration Provides advice and guidance to approvers in determining and applying for salary loadings; any benchmarks or gender pay gap information and a recommendation to approve or reject a request.

Process approved salary loading payments and issues letter.
Head of Area After receiving written recommendation from the TA&R team, the Head of Area reviews the requested salary loading request based on advice and recommendations from TA&R and either approves or rejects.
Senior Executive Group (SEG) member reporting to the Vice-Chancellor
 		 After receiving written endorsement/advice from TA&R, and Head of Area, the SEG member approves or rejects the request for salary loading.
Chief Financial Officer (CFO) After receiving written advice from TA&R, the CFO conducts budget review of the requested salary loading and provides recommendation if the loading should proceed based on Area and University wide considerations.
Vice-Chancellor For any loading request outside of the relevant loading criteria/conditions, requires the Vice-Chancellor (VC) review and approval, which will be sent to the VC from TA&R.

Approves salary loadings of employees that report directly to a SEG member.

Recommends to Council remuneration of SEG members reporting to the VC.

Part B - Steps to Applying Salary Loadings

Step 1: Review Criteria of a Salary Loading

(7) A salary loading is a regular taxable payment over and above base salary.

(8) Salary loadings are not subject to salary increases provided under the La Trobe University Enterprise Agreement 2023. 

(9) Salary loadings are:

  1. specific to an employee in a particular position and are not retained if the employee is appointed to another position within the University;
  2. paid whilst on approved paid leave;
  3. paid on a pro-rata basis for fractional staff.

(10) The recommended loading should be considered on a case-by-case basis and should take into account:

  1. how the increased remuneration relates to the level of the position. For example, if a significant loading is being considered for a lower level position, it may be that the position is not correctly classified;
  2. comparison of the proposed remuneration of the position in relation to the hierarchy of positions within the work area;
  3. the remuneration of other similar positions within the University (internal relativities);
  4. initiatives such as, but not limited to Strategic Academic Recruitment which may be granted an exemption to the loading amounts, subject to approval from the Vice-Chancellor;
  5. sector and/or general market benchmark remuneration if comparable job roles (if applicable);
  6. the impact on the University’s gender pay gap position.

(11) Please contact the TA&R team for any assistance required when considering a salary loading.

Salary Loading Request Process

(12) Where a supervisor/manager forms a view that a salary loading should be applied, the process is as follows:

  1. Proposed salary loadings for existing staff:
    1. Manager to complete the Salary Loading Request Form (the Form) in PageUp;
    2. The Form will go through a workflow consisting of:
      1. TA&R for review, assessment and recommendation
      2. Head of Area for approval
      3. SEG Member for approval
      4. CFO for approval
      5. TA&R to advise outcome and process;
    3. If approved, the staff member will receive a confirmation letter via PageUp to accept online;
    4. Upon acceptance, TA&R will forward the loading details to payroll for processing.

Step 2: Determining the Level and Term of the Salary Loading

Conditions
All staff including ESMC staff are eligible to receive an Attraction Loading up to a maximum of $15,000 and no more than 15% of base salary, whichever is lesser, paid in three equal instalments.

The first instalment of the Attraction Loading will be made within the first month after commencement; second instalment will be made after the completion of three months service and the final instalment after completion of six months service. 

Staff who receive an Attraction Loading will not be offered a Market Loading or Retention Loading within the first 18 months after commencement in the position.

The loading is inclusive of superannuation and will attract taxation on the 3 payment amounts.
Considerations
Determine if an Attraction Loading is required to have the person accept an offer of employment. Explore possibilities of other ways to encourage the staff member to LTU such as the benefits on offer or reducing superannuation from 17% to the Superannuation Guarantee Contribution amount. This will result in an increase in take home pay by payment of a Super Cash Out amount for the difference between the SGC amount and the 17% super amount.

Managers should consider if a Market loading is a more appropriate option, which considers what the comparable external market is paying.

Managers need to be aware that an individual may leave La Trobe’s employment in a short timeframe and there is no ability to recoup the initial outlay. For these reasons an Attraction Loading should be rarely used.

Retention Loadings (RL) – a fortnightly payment made to highly competent staff within their current position

Conditions
ESMC staff are not eligible to receive a Retention Loading.

The quantum is to be no more than 15% of the staff member’s current base salary and will be converted to a flat rate amount. The amount paid as a Retention loading is a flat rate and will not increase with future EA increases.

The Retention Loading amount approved is inclusive of superannuation and is to be paid on a fortnightly basis.

During the period the loading is paid, if an academic employee is promoted, or a professional employee receives a reclassification or appointment to a higher level, the Retention Loading will be renegotiated or removed.

If the staff member is receiving a Higher Duties Allowance, the Retention Loading will be reduced by the amount being paid as a HDA.

The Area must have the availability of funds to pay for the Retention loading, as the cost comes out of the Area’s annual budget.
Considerations
Determine the criticality of losing the staff member and how difficult will it be to find a suitable replacement for their current position. Staff who have received a Retention Loading cannot also be offered a Market Loading for the same period.

Market Loadings – the quantum of a Market Loading should be in line with current Benchmark data as provided by TA&R. Prior to applying for a Market Loading, benchmark data for a specific role must be provided to the Area by TA&R and either in line with the Higher Education Sector benchmark data or the general market benchmark data, dependent upon the role.

Conditions
ESMC staff are not eligible to receive a Market loading.

The quantum is to be no more than 15% of the staff member’s current base salary and will be converted to a flat rate amount.

Market Loadings are applicable for a maximum period of 24 months and are variable due to market conditions.

As Market Loadings are a fixed amount, they do not increase with EA increases.

A Market Loading is inclusive of superannuation and is to be paid on a fortnightly basis.

During the period the loading is paid, if an academic employee is promoted or appointed to a higher classification level, or a professional employee receives a reclassification or appointment to a higher level, the Market loading will be removed.

The Area must have the availability of funds to pay for the Market Loading, as the cost comes out of the Area’s annual budget.
Considerations
Determine if a Market Loading will assist in ensuring LTU’s ability to have them accept the offer or if an existing staff member, not leave. Do they have skills or knowledge that are currently in short supply, or the role is difficult to recruit to?

Responsibility Allowance – is payable to a staff member who is undertaking additional responsibilities beyond those expected at their current level of appointment.

Conditions
A Responsibility Allowance is not to be used in place of a Higher Duties Allowance, which is paid if the staff member is acting in another role due to the absence of the incumbent or it is temporarily vacant and being recruited to.
 
A responsibility Allowance is paid when a staff member takes on additional tasks at a higher level for a period of time.

All professional and academic staff are eligible including ESMC.

To be paid on a fortnightly basis and is inclusive of superannuation.

A Responsibility Allowance should only be payable for additional duties undertaken for a period of a minimum of 2 weeks and up to a maximum of 24 months.

For ESMC staff, a responsibility allowance should only be payable for additional duties undertaken for a period of a maximum of 4 weeks and up to a maximum of 24 months.

The loading can be up to a maximum of 15% of base salary.
Considerations
A Responsibility Loading is payable in instances such as project work or performing a proportion of duties of another position.

The additional tasks should be discussed as a stretch target and/or a professional or personal development opportunity to extend the individuals knowledge and skills. 
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Section 7 - Definitions

(13) For the purpose of this Procedure:

  1. Attraction Loading: A loading paid in 3 equal instalments to a new staff member for the purpose of attracting them to the University. Maximum of $15,000 of 15% whichever is the lesser. Paid in equal instalments within the first month; at the conclusion of 3 months and at the conclusion of 6 months employment. If the employee moves to a different role any any of the 3 points; the loading will no longer be payable. 
  2. Classification: is the level of responsibility of a position, generally shown relative to other positions and as defined in the Enterprise Agreement is the “level which most accurately reflects the work to be performed, taking into account the duties and responsibilities of the position”.
  3. Market Loading: Loading paid to a new or existing employee in order to match the level of remuneration on offer in the Higher Education Sector or general market outside the University, based on Mercer benchmark data.
  4. Professional Staff and Academic Staff: are defined under the La Trobe University Enterprise Agreement 2023 . 
  5. Responsibility Loading: A loading paid to an existing employee for the purpose of appropriately rewarding them for additional or new responsibilities on a temporary basis. 
  6. Retention Loading: A loading paid to an existing staff member for the purpose of retaining them as an employee of the University, due to their skills or knowledge and criticality of loss to the University.
  7. Substantive position: is the position to which a staff member has been appointed (or would normally occupy) on a continuing basis.
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Section 8 - Authority and Associated Information

(14) This Policy is made under the

  1. La Trobe University Act 2009
  2. Fair Work Act 2009