Victorian Public Service (VPS) Salary 2025: How It Compares to Awards and the National Minimum Wage

What is the VPS Salary 2025?

The keyword "vps salary 2025" refers to the pay rates for employees of the Victorian Public Service (VPS) during the 2025 calendar year. These rates are set by an enterprise agreement between the Victorian Government and the CPSU (SPSF Group), not by a modern award. Understanding where VPS salaries sit relative to the national minimum wage and award rates helps you see how public sector pay compares with the rest of the workforce.

VPS Salary Structure

VPS employees are classified into seven grades, each with value ranges and progression steps. The rates effective from 1 May 2025, published by the CPSU Victoria, show:

• Grade 1: $55,026 – $58,412
• Grade 2: $60,295 – $77,430
• Grade 3: $79,122 – $96,073
• Grade 4: $97,955 – $111,142
• Grade 5: $113,022 – $136,747
• Grade 6: $138,631 – $185,518
• Grade 7: $188,297 – $256,088

The Victorian Public Sector Commission (VPSC) reported a median VPS salary of $111,142 as of June 2025, with a mean of $121,546. This median aligns with the top of Grade 4.

Awards Versus the National Minimum Wage

The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised to $52,255. On the Salary Index, that gives an index of 48.2 (where 100 equals full-time adult ordinary-time earnings of $108,352). Even the lowest VPS Grade 1 salary of $55,026 has an index of 50.8, above the national minimum.

Modern awards set minimum pay for specific industries and occupations. For example, the entry-level award floor is $25.74 per hour, and award minima rose by 4.75% from 1 July 2026. But VPS employees are covered by an enterprise agreement, which typically pays more than the relevant award would. The VPS Grade 1 hourly rate (based on $55,026 annual, 38-hour week) is about $27.85, which is above both the national minimum wage and the award floor.

Where VPS Salaries Sit on the Index

The Salary Index compares annual gross ordinary-time earnings to the national line of $108,352 (index 100). The median VPS salary of $111,142 gives an index of 102.6 – slightly above the national average. By comparison, the overall Victorian state index is 98 (annualised $106,137), meaning VPS employees earn more than the typical Victorian worker.

Looking at specific grades:

• Grade 2 top ($77,430) index 71.5
• Grade 4 top ($111,142) index 102.6
• Grade 6 top ($185,518) index 171.2
• Grade 7 top ($256,088) index 236.3

These figures show that VPS salaries span from below the national line (junior grades) to well above it (senior grades).

Enterprise Agreement vs Modern Awards

Modern awards are industry or occupation-based safety nets that set minimum wages, hours, and conditions. The VPS enterprise agreement replaces the award for covered employees. The agreement was approved by the Fair Work Commission and covers about 50,000 staff across all Victorian government departments. It includes progression steps within value ranges, meaning employees can move up without changing grade.

One key difference: award rates are often lower than enterprise agreement rates. For example, the Retail trade industry index is 75.9, while VPS Grade 2 (index 71.5) is similar, but VPS Grade 4 (102.6) is well above retail. The VPS agreement also provides for a 25% casual loading, matching the standard casual loading under the Fair Work Act.

Gender Pay Gap in VPS

The VPSC data shows a median gender pay gap of 1.7% in favour of men within the VPS (as of June 2025), down from 0% in 2024. The mean gap is 5.6%. This is much narrower than the overall public sector median gap of 8.3%. The gap is driven by a higher proportion of men in the top grades.

Take-Home Pay Estimates

Using the resident tax rates for 2026–27 (with tax-free threshold and 2% Medicare levy), a VPS employee on the median $111,142 would pay approximately:

• Tax: $24,267 (based on 30% bracket up to $135,000)
• Medicare: $2,223
• Net: $84,652 per year, or about $7,054 per month.

This is a rough estimate ignoring HELP repayments, salary sacrifice, or the Medicare levy surcharge. The pay guides section has more detailed calculators.

How VPS Salaries Compare Across States

The states page shows Victoria’s overall index at 98, below the national line. But VPS salaries are above the state average. For comparison, the ACT public sector index is 109.9, reflecting higher federal public service pay. VPS Grade 7 top ($256,088) exceeds the ACT average of $119,090.

Summary

VPS salaries in 2025 are set by enterprise agreement and are generally higher than the national minimum wage and modern award minima. The median VPS salary sits at index 102.6, just above the national line. For anyone comparing job offers or negotiating pay, the VPS structure offers clear progression steps and rates that are competitive with the broader market.

For more on how salaries are measured, see how the index works. To explore other public sector pay, visit the topics page.