Your VPS salary 2025: what you actually take home after tax and Medicare

Understanding your VPS salary 2025

If you work in the Victorian Public Service, your pay is set by either the Victorian Public Service Award 2016 or an enterprise agreement. The award, maintained by the Fair Work Ombudsman, defines minimum salaries for each grade and value range . The enterprise agreement, approved by the Fair Work Commission, often sets higher rates . Your take-home pay is what lands in your bank account after income tax and the Medicare levy.

VPS classification structure

The VPS uses grades 1 to 7, each with one or more value ranges. For example:

• VPS Grade 1.1 – $52,436 to $58,926 per year
• VPS Grade 2.1 – $60,611 to $67,809 per year
• VPS Grade 3.1 – $76,998 to $84,589 per year
• VPS Grade 4.1 – $93,865 to $105,671 per year
• VPS Grade 5.1 – $107,359 to $117,984 per year
• VPS Grade 6.1 – $130,295 to $151,291 per year
• Senior Technical Specialist 7.1 – $174,780 to $195,019 per year

These are the award minimums effective from 1 July 2026. Your actual salary may be higher under the enterprise agreement. The agreement also lists weekly rates – for instance, VPS Grade 2.1 pays $861.00 per week (full-time) .

How tax and Medicare affect your take-home

Your employer withholds pay-as-you-go (PAYG) tax using the 2026–27 tax rates. The first $18,200 is tax-free. Then:

• $18,201 to $45,000: 15 cents per dollar over $18,200
• $45,001 to $135,000: $4,020 plus 30 cents per dollar over $45,000
• $135,001 to $190,000: $31,020 plus 37 cents per dollar over $135,000
• Over $190,000: $51,370 plus 45 cents per dollar over $190,000

You also pay the Medicare levy at 2% of your taxable income. The latest single-person thresholds are $28,011 and $35,013. If you earn between those amounts, the levy is reduced. Above $35,013, you pay the full 2%.

Example: VPS Grade 3.1

Assume you earn $76,998 (the minimum of Grade 3.1). Your annual tax would be:

• Tax on $76,998: $4,020 + 0.30 × ($76,998 – $45,000) = $4,020 + $9,599.40 = $13,619.40
• Less Low Income Tax Offset (LITO): maximum $700, but reduces by 1.5 cents per dollar over $45,000. At $76,998, LITO = $325 – 0.015 × ($76,998 – $45,000) = $325 – $479.97 = $0 (phased out).
• Medicare levy: 2% × $76,998 = $1,539.96
• Total deductions: $13,619.40 + $1,539.96 = $15,159.36
• Take-home pay: $76,998 – $15,159.36 = $61,838.64 per year (about $2,378 per fortnight).

This is an estimate. Your actual take-home may differ if you have salary packaging, HELP/HECS repayments, or the Medicare levy surcharge.

Superannuation and salary packaging

Your employer pays super on top of your salary at 12% from 1 July 2026. That means if your VPS salary is $76,998, your employer contributes an extra $9,239.76 to your super fund. Super does not reduce your take-home pay – it’s an additional benefit. You can also use Salary packaging to pay for items like a car or laptop with pre-tax dollars, which lowers your taxable income and increases your take-home.

Casual and part-time VPS employees

If you are a casual VPS employee, you receive a 25% loading instead of paid leave. Your take-home will be higher per hour, but you miss out on annual leave and sick pay. Part-time employees are paid pro-rata based on the full-time rate for their grade. The minimum engagement is three consecutive hours per shift.

Check your own take-home

Use our Take-home pay tool to enter your VPS salary and see what clears after tax and Medicare. You can also explore Tax and Medicare for more details on thresholds and offsets. Remember, the national minimum wage is $26.44 per hour and $1,004.90 per week – VPS salaries start well above that.

Summary

Your VPS salary 2025 depends on your grade and value range. After income tax and the Medicare levy, your take-home will be roughly 75–80% of your gross pay, depending on your bracket. Use the award and enterprise agreement rates as a starting point, then apply the tax rates above. For a precise figure, run the numbers through our calculator or speak to your payroll office.