31.3.5 Adjustments to NWE in respect to Increments

Subsection 8(6) of the SRCA provides that if an employee received or would have received a pay rise in respect of:

a)the attainment by the employee of a particular age

b)the completion by the employee of a particular period of service, or

c)the receipt by the employee of an increase in salary, wages or pay by way of an increment in a range of salary, wages or pay applicable to the employee or to his or her office, position or appointment

then his/her NWE is also to be increased by the same percentage.

In this context, 'increment' means an automatic or periodic increase in payment on the basis of age, length or continuity of service, participation in recruit training etc.

Note that while the ADF pay scales provide for a number of pay grades within each rank, these are skill-based pay points and are generally subject to training and assessment of satisfactory performance. Individuals do not ordinarily move through those pay levels automatically. ADF pay grades are ordinarily not increments for the purposes of S8(6).

The only exceptions involve progression through pay grades and a promotion/ classification change at the completion of initial training, a condition of service which applies only to ADF recruits and apprentices etc.

ADF recruits and apprentices are dealt with by this handbook as a special case, and this is discussed in detail at 31.3.6 and 31.3.7.

Increments in respect of a Reservist's civilian employment are treated the same as for a full-time ADF member.

Increments embedded within the various ADF training grades are dealt with separately at 31.3.6.

In the case of ex and current full-time members and Reservist's ADF employment:

• NWE should be adjusted to take into account increments payable for age and length of service when they are paid, or would have been paid if the client was medically discharged.
• Increments in respect of a Reservist's civilian employment are treated the same as would an increment for a full-time ADF member.

This advice is based in the outcomes of the Federal Court case of Military Rehabilitation & Compensation Commission v Perry [2007] FCA 1586. A link to that particular case is http://www.austlii.edu.au/au/cases/cth/FCA/2007/1586.html