8 April 2008
This month marks the launch of the new NZDF Military Remuneration System, which will implemented in the new financial year. This system has been developed to ensure military personnel get the best deal available from the amount of money CDF has to spend on pay. CDF and the Executive Leadership Team have also decided that some of the current inequities in pay are to be removed. Please read the information Military Total Rewards Model [pdf 136KB]. Note that the superannuation scheme you are in, and the type of housing you have no longer effects the amount of TOTAL remuneration you receive.
This is good news. The new system will provide equity and choice, and will result in a better deal for all military personnel.
The purpose of this information is to illustrate the main remuneration concepts that will transform the system and to help you understand them. I ask you to keep in mind that there are still some details to be worked through, and as soon as these are determined we will show you exactly how your pay will be determined in the future.
Some important dates: 4 July 08: This is the date when the first phase of the new system will start. 18 July 08: Your first pay on the new system. The first phase will bring every uniformed RF person to a ‘level playing field’ in terms of TOTAL remuneration. That is, the super scheme you are on or the housing assistance you currently receive will not make your TOTAL pay different from someone else’s. In addition, you will have more choice about HOW you receive your pay (how much you put into a super scheme or take into your bank).
In the second phase, you will receive ‘market pay’ for your job (and yes, we can work that out for riflemen and gunners!) and on top of that you will receive your Military Factor and your Universal Accommodation Allowance which together are worth at least $11000 per year.
To assist with questions arising, the Military Remuneration Project Team (MRPT) has established a Q&A webpage (accessible from the Pers Branch intranet site).
Determining Your Take Home Pay
CDF has given an assurance that all military personnel will be better off following the introduction of the military remuneration system.
Variables includes taxation, superannuation, allotments and allowances – reflects compulsory payments, variable and additional remuneration and voluntary payments.
Total Fixed Remuneration (TFR) is the dollar value shown on the Military Remuneration Model and is the starting point for your remuneration slip calculations.
Market Sector A new opportunity to achieve parity for selected ranks and/or specialisations/trades with either the All Organisations index (Market Sector B) or the Private Sector index (Market Sector C), and not just with the Public Sector index (Market Sector A).
Pay Progression Steps A method of providing pay progression within rank based on experience, skills, qualifications, competence, responsibility, accountability and individual performance (to be implemented fully by 1 Jul 09).
Tier Trades and specialisations have each been amalgamated into just three ‘pay groups’ based on similar overall skill levels and ‘latent value to service’ (which includes recruitment criteria, educational requirements, trade difficulty and task complexity, training commitment, utility and contribution to output generation).
Rank is the primary factor in determination of an individual’s Total Fixed Remuneration.
The Military Remuneration Model is presented in two halves: Officers and soldiers.