• Section 1 - Introduction
• Section 2 - Scope
• Section 3 - Procedure
• Salary Loading Principles
• Types of Salary Loading
• Eligibility and assessment criteria
• Amount and term
• Employment and payment treatment
• Review, variation and cessation
• Governance, equity and reporting
• Section 4 - Non-compliance
• Unauthorised commitments
• Section 5 - Definitions
• Section 6 - Transitional Arrangements

Section 1 - Introduction

(1) This Procedure establishes a consistent, equitable and sustainable framework for approving salary loadings above a staffmember’s substantive base salary where a demonstrable University need cannot reasonably be addressed through classification review, normal salary progression, an enterprise agreement entitlement or another established allowance.

Section 2 - Scope

(2) This Procedure applies to continuing and fixed-term staff employed by the University of Newcastle under the relevant enterprise agreement(s).

(3) Unless expressly approved under an applicable industrial instrument, this Procedure does not apply to:

1. casual loading or casual rates; or
2. higher duties allowance, overtime, on-call allowance, shift allowance, clinical loading, first aid allowance, travel allowance or other enterprise agreement allowances; or
3. senior staff remuneration.

Section 3 - Procedure

Salary Loading Principles

(4) Salary loadings are exceptional and must serve a clear attraction, retention, market or temporary responsibility purpose.

(5) A salary loading must not be used to avoid correct position classification, reclassification, promotion, higher duties or enterprise agreement obligations.

(6) Salary loading decisions must be evidence-based, affordable, transparent in process, appropriately confidential, and consistent with gender pay equity considerations.

(7) Approval to offer a salary loading must be obtained in writing from the delegate before any offer or commitment is made to a staff member or candidate for a position.

(8) All salary loadings must have a defined term, review date, funding source and cessation conditions unless the delegate expressly approves otherwise.

(9) A salary loading does not alter the employee’s substantive classification level or create an entitlement to ongoing payment beyond its approved term.

Types of Salary Loading

Eligibility and assessment criteria

(10) An application to approve a salary loading must be made in writing and be supported by the evidence relevant
to the type of salary loading sought.

Amount and term

(11) The salary loading may be expressed as a fixed dollar amount or a percentage of base salary. Ordinarily, a salary
loading should not exceed 20% of substantive base salary and should not exceed an initial period of two years.

(12) A higher amount requires a documented exceptional case.

(13) A salary loading must not be backdated unless required to correct an administrative error or expressly approved by
the authorised delegate.

(14) Salary loadings may be extended for periods not exceeding a period of 12 months. Extensions will be assessed using
the above eligibility criteria.

Employment and payment treatment

(15) The approval and variation letter must state whether the loading is superannuable, indexed, payable during paid
leave, included in termination-related calculations, and affected by changes in fraction or base salary.

(16) Unless the approval states otherwise and is legally permissible, a percentage loading moves with applicable base
salary increases; a fixed-dollar loading is not automatically indexed.

(17) A salary loading is paid pro rata for part-time employment unless otherwise approved.

(18) A salary loading approved on the basis of a market loading or a responsibility loading does not transfer
automatically on appointment, secondment or transfer to another position.

(19) Payroll treatment must comply with applicable legislation, enterprise agreements, superannuation requirements and the approved written terms.

Review, variation and cessation

(20) Human Resource Services (HRServices) will initiate a review of an approved salary loading before the nominated end date. Continued payment is not automatic.

(21) The review must test whether the original rationale remains valid, the staff member continues to meet relevant performance expectations, internal equity remains acceptable, and funding remains available.

(22) A salary loading ceases on the earliest of:

1. the stated expiry date;
2. the staff member leaving the position or University;
3. the additional responsibility ending;
4. replacement by a new remuneration arrangement;
5. cessation under the written terms following a review; or
6. another event specified in the approval letter.

(23) Any early reduction or cessation must comply with the employment contract, applicable enterprise agreement, procedural fairness and law.

Governance, equity and reporting

(24) HRServices will maintain a central register of all salary loadings, terms, review dates, approvals and demographic data.

(25) At least annually, HRServices will report de-identified information to the Executive Leadership Team on salary loadings including information related to expenditure, expiry risk, equity patterns, gender impacts, occupational concentrations, exceptions and overdue reviews.

(26) Where a proposed salary loading creates a material gender pay-equity concern, HRServices may recommend adjustment, cohort review or a different intervention before endorsement.

(27) Information will be handled confidentially and disclosed only for proper employment, governance, audit, legal and reporting purposes.

Section 4 - Non-compliance

Unauthorised commitments

(28) An employee must not make any offer, commitment or representation about a salary loading unless authorised under the University's Delegation of Authority Framework. Doing so may breach this Procedure and result in corrective action under relevant University instruments. This Procedure does not affect the legal validity or enforceability of any commitment that is otherwise binding on the University at law.

Section 5 - Definitions

(29) In the context of this document the following definitions apply:

1. “base salary” means the employee’s substantive salary excluding loadings, allowances, overtime, bonuses and employer superannuation, unless an applicable instrument provides otherwise;
2. “salary loading” means an approved payment above base salary for a defined purpose and on documented conditions;
3. “market data” means reliable and sufficiently current remuneration or labour market information relevant to the role, discipline, location and comparator market;
4. “total remuneration” means base salary plus approved loadings and other remuneration components, as specified; superannuation treatment must be stated separately;
5. “review date” means the date by which continuation, variation or cessation must be formally assessed.

Section 6 - Transitional Arrangements

(30) Existing lawfully approved loadings continue under their current written terms until their next review, or expiry.

(31) Within six months of the effective date of this Procedure, HRServices will create an inventory of all existing salary
loadings and identify missing terms, expired approvals and equity risks.

(32) Any renewal or material variation after the effective date of this Procedure must comply with the requirements of
this Procedure.

(33) No existing employee entitlement may be reduced by this Procedure. Any proposed change requires separate
lawful authority and process.