Remuneration Review for the 2022/23 Financial Year and 2023/24 Financial Years effective 1 July 2022 and 1 July 2023

Decisions have been made for the 2022 and 2023 remuneration review rounds. We apologise for the significant delays in resolving the 2022 remuneration review, which has been impacted by both bargaining with NZPFU, and then PSA.

These decisions take into account government workforce policy statements and guidance, internal relativities arising from relevant bargained outcomes, and overall affordability pressures.

Implementation of the 2022 round, effective 1 July 2022, is targeted for loading and testing in June with payment in July, following the current detailed work implementing the outcome of last year's PFU bargaining.

Accordingly, with the 2023 round then almost upon us, and the 2023 increases for much of the workforce already agreed in bargaining rounds with PFU and PSA, we have chosen to finalise and communicate the increases for 1 July 2023 for all eligible staff at the same time. This will ensure we are able to pay these in a timely way and ensure the delays faced in 2022 are not experienced again this year. 

This will enable implementation of the 2023 round to occur in August for eligible staff.

The following has been decided:

From 1 July 2022 – all market rates, for all roles graded up to and including Grade 18 will increase by 5%, with the relevant steps within the grade adjusted accordingly.

All market rates for all roles grades at or above Grade 19 will increase by 2.5%, with the relevant steps within the grades adjusted accordingly.

From 1 July 2023 – the same increases are repeated:  all market rates, for all roles graded up to and including Grade 18 will increase by 5%, with the relevant steps within the grade adjusted accordingly.

All market rates for all roles graded at or above Grade 19 will increase by 2.5%, with the relevant steps within the grade adjusted accordingly.

Position in range above 100% - for 2022 and 2023 the position in range for employees above 100% will be retained, so as to ensure all staff in each grade eligible for the market rate review, will benefit.

Progression - as advised previously, the progression approach which applied to eligible roles for 2021 has continued in 2022, and will still continue in 2023.  That is:

• For people below the 100% pay step within their pay band, (or below 105% for people in roles graded 11 and 12) normal single step progression will apply. To progress from one step to another, a rating of no less than “Achieves Requirements” is required in the annual progression and performance review. 

• For people whose salary is between 100% and 110% of their pay band, a single additional pay increase of 2.5% is available for those achieving “Exceeds Requirements’ or "Significantly Exceeds Requirements" performance ratings, where this is approved by their DCE. This replaces the usual policy provision of a 2.5% pay increase for an ‘Exceeds Requirements’ rating and 3.5% pay increase for a “Significantly Exceeds Requirements” rating.

Implementation

We are aiming to have the 2022 increase to market rates, effective 1 July 2022, loaded, tested, and in place in July. This will include backpay for updated rates (including where progression has occurred).

We are aiming to have the 2023 increase to market rates, effective 1 July 2023, loaded, tested and in place in August 2023.

Employees employed on Collective Agreements

There has been engagement with unions through relevant bargaining and consultation process in arriving at the market rate increases for employees covered by PFU, PSA and FECA CEA’s. 

The implementation of the PFU agreement is underway, with 2022 rates in place, and backpay implementation targeted for early May. 

Following this, the PSA and FECA market rates covered by the remuneration review process will be paid on the same timeline as the rest of the remuneration review as outlined above.