Remuneration Policy
1. Purpose
The purpose of this policy is to outline a clear, equitable and transparent remuneration policy that enables us to attract and retain employees of Yarra Valley Water to help achieve our strategy and deliver our essential services in line with our core purpose.
2. Scope
This policy applies to all employees, including executives, senior contract employees, and board members of Yarra Valley Water.
3. Policy statement
Yarra Valley Water is committed to fostering a transparent, equitable, and competitive approach to remuneration that actively addresses and reduces the gender pay gap and aligns with our strategic objectives and values. We recognise the importance of providing equitable compensation that reflects our employee’s contributions, market standards, and the specific responsibilities of each role.
In line with our strong ongoing commitment to ehancing diversity, equity, and inclusion, we are dedicated to ongoing monitoring, open reporting, and taking meaningful action to close the gender pay gap across all levels of the organisation. This commitment informs our “best and only offer” approach to salary (where we are clear and upfront with all applicants what our salary offer will be, not requiring them to be skilled at negotiation to receive equitable pay compared to their peers). We also regularly review our pay structures, promotion outcomes and performance evaluation process to identify and eliminate any unintended structural biases.
Additionally, we offer a range of non-salary benefits to support employee development, work-life balance, and overall well-being. By adhering to relevant legislative frameworks and maintaining a commitment to pay equity and transparency, we strive to create a work environment that encourages excellence and dedication to delivering essential services to our community. We also aim to reward and recognise our high performers well for the contribution they deliver to YVW. We do that with a total rewards approach aligned to our employee value proposition, fostering loyalty and retention.
4. Guiding Principles
Remuneration at Yarra Valley Water is designed to:
- Reward employees equitably for work value and performance.
- Support the attraction and retention of skilled employees.
- Comply with Victorian Government remuneration policies, guidelines, and directives.
- Reflect YVW’s need to be financially sustainable.
- Support Gender Equality at YVW, ensuring equal pay for roles of same or similar value.
- Ensure distributive (equity of outcomes based on work value and contribution compared to peers, and procedural fairness (consistency, transparency and impartiality in decision making).
- Align with organisational values and objectives.
5. Remuneration Structure
Board of Directors
Director remuneration is determined by the Victorian Government Remuneration Framework for public entity board members.
The Minister for Water, in consultation with the Treasurer, sets board remuneration.
Board Directors are compensated for time, expertise, and governance responsibilities in line with government-set rates.
Managing Director Remuneration
Managing Director Remuneration is set by the Board of Directors in accordance with the Public Entity Executive Classification Framework (PEECF) and Public Entity Executive Remuneration (PEER) Policy.
Executive Remuneration
Executive remuneration is set by the Managing Director (after consultation with the Board) in accordance with the Public Entity Executive Classification Framework (PEECF) and Public Entity Executive Remuneration Policy.
All Executive Remuneration is based on a Total Remuneration Package (TRP) of base salary and superannuation.
Performance-based pay is not provided to executives in line with public sector policy.
Senior Contract Employees
Senior Contract Employees Remuneration is set in accordance with the job points and rates outlined in the Senior Contract Employees Remuneration Framework as varied from time to time. Yarra Valley Water uses the Jobscore Job Evaluation Methodology to determine the work value of a role and at which point it is positioned in our salary band. Any departures to our remuneration banding points will be by exception only and where extenuating circumstances such as market conditions and business criticality warrant doing so to attract and retain key staff.
Our general target market positioning (i.e. what we aim to pay) is reflective of our operating context and the balance between provision of services to the community and the need to be financially prudent and efficient. Being a Victorian Government owned organisation, our target market positioning is between the 25th-50th percentile of our target markets.
Each year People, Performance & Culture will complete a market review to ensure our rates of pay remain competitive and in line with our target positioning. Market reviews consider the Annual Premier’s Determination, Consumer Price Index, Wage Price Index and other factors. Any increase to banding is subject to approval by the Yarra Valley Water Executive Team.
All Senior Contract Remuneration is based on a Total Remuneration Package (TRP) of base salary and superannuation.
All Other Employee Remuneration
All other Employees are covered by the relevant Yarra Valley Water Enterprise Agreement (EA) as varied from time to time.
All other employee pay rates are outlined as base salary plus superannuation.
6. Annual Increases
Managing Director: Annual salary increases are awarded at the discretion of the Board of Directors up to the maximum amount allowed by the Premier’s Annual Guideline Rate.
Executives: Annual salary increases and any additional progression increases (within band) are awarded at the discretion of the Managing Director, in consultation with the Board. Annual salary increases will not exceed the maximum amount allowed by the Premier’s Annual Guideline Rate.
Senior Contract Employees: Annual salary increases are awarded at the discretion of the Executive team taking into consideration the Premier’s Annual Guideline Rate and the relevant Enterprise Agreement annual increase.
Enterprise Agreement Employees: Annual salary increases are awarded at the rates pre-approved and set out in the Enterprise Agreement. Additional salary progression occurs through increments within the classification levels in line with the requirements of the relevant Enterprise Agreement.
7. Superannuation and Benefits
Employer superannuation contributions comply with the Superannuation Guarantee (Administration) Act 1992 (Cth).
Employees may access the current default super fund, Equip Super or all other employee nominated super funds.
Non-salary benefits may include but are not limited to professional development including paid study leave, purchasing additional leave, paid volunteer leave, paid parental leave, hybrid working and inclusive flexible working arrangements. Senior contract employees and our Executives and Managing Director may elect to package either a YVW owned vehicle or novated lease. We also offer tool of trade vehicles to some field based positions.
8. Additional Payments
Employees may also be eligible for additional payments for work performed outside of ordinary hours in certain limited circumstances such as responding to declared incidents and emergencies. These may include overtime, availability allowances, time in lieu and flat rate payments. All payments are subject to meeting certain strict conditions and following organisational approval processes.
9. Job Re-evaluations and Adjustments
Senior Contract Employees: Applications are accepted for job re-evaluations twice annually where an employee’s position has changed significantly.
If an evaluation results in a change in where the employees role is placed in the banding, then the remuneration change will be effective from either the 1st of April or October that year.
Enterprise Agreement Employees: May request a review of their classification in accordance with the terms of the Enterprise Agreement.
10. Compliance and Governance
The Leadership Culture and Wellbeing Committee oversees the implementation and compliance of this policy.
YVW reviews executive remuneration annually in line with government policies, annual determinations by the Victorian Independent Remuneration Tribunal and the Premiers Annual Guideline Rate.
The policy is reviewed every 12 months or in response to relevant policy changes or legislative obligations.
11. Transparency and Reporting
Executive remuneration is reported in the Annual Report as per Victorian public entity reporting obligations.
Compliance with Victorian Public Sector Commission and Public Entity Executive Remuneration Policy reporting requirements is maintained.
12. Policy Review and Approval
The Board of Directors approves this policy.
13. Related Policies
- Diversity Equity and Inclusion Policy
14. Related Documents
- Senior Contract Remuneration Framework
- Instrument of Delegation (also known as the Who Can Authorise Register)
- Senior Contract Remuneration Exception Form
- Job Profile Template
15. Legislative Compliance and Regulatory Compliance
This policy is in line with:
- Public Entity Executive Remuneration Policy (PEER) and Public Entity Executive Classification Framework (PEECF) (for executives)
- Fair Work Act 2009 (Cth)
- Superannuation Guarantee (Administration) Act 1992 (Cth)
- Gender Equality Act 2020 (Vic)
- Applicable Yarra Valley Water Enterprise Agreement and underlying Water Industry Award 2020
Authorisation
The Board approved this Policy at the Board of Directors meeting on 12 May 2025.
Date | Summary of changes | Authorisation |
| 25/03/2025 | New policy | Julie Mouka Divisional Manager – People Partnering and Operations |
| 13/05/2025 | Approved at Board meeting 13/05 | Board of Directors |