VPS Salary 2026: Your Take-Home Pay After Tax and Medicare

VPS Salary 2026: What You Take Home Each Fortnight

When you see a VPS salary in 2026, the figure is your gross annual pay. What lands in your bank account each fortnight depends on income tax, the Medicare levy, and any salary-sacrifice arrangements. This guide walks through the numbers for Victorian Public Service grades using the latest award and enterprise agreement rates.

How the Tax Brackets Apply to Your VPS Pay

The 2026–27 tax rates for Australian residents are progressive. For a single person with no dependants, the first $18,200 is tax-free. Then:

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

You also get the Low Income Tax Offset (LITO) if your taxable income is under $66,667. The maximum LITO is $700 for incomes up to $37,500, then it phases out. For a VPS 3 earning $90,000, the LITO is already zero.

Medicare Levy: The 2% You Pay

The Medicare levy is a flat 2% of your taxable income, but there are reduced rates for low earners. The latest published single-person thresholds are $28,011 and $35,013. If your VPS salary is above $35,013, you pay the full 2%. Almost all full-time VPS employees will be above that threshold, so expect a 2% deduction.

Super Is on Top, Not Taken Out

Your VPS employer contributes 12% super on your ordinary time earnings. This is paid directly to your super fund and does not reduce your take-home pay. For example, a VPS 4 on $100,894 gross, your employer adds $12,107 extra. Your take-home is calculated on the $100,894.

Example Take-Home Calculations for VPS Grades

Using the 2026 VPS pay scales from the Fair Work Ombudsman award and the Victorian Public Service Enterprise Agreement 2024, here are typical fortnightly amounts after tax and Medicare for a single resident (no HELP/HECS, no salary sacrifice).

VPS 3 (Grade 3.1, step 3.1.3 – $84,989)

• Annual tax: $4,020 + 30% × ($84,989 – $45,000) = $4,020 + $11,996.70 = $16,016.70
• LITO: $325 – 1.5% × ($84,989 – $45,000) = $325 – $599.84 = negative, so $0
• Medicare levy: 2% × $84,989 = $1,699.78
• Total deductions: $17,716.48
• Net annual: $67,272.52
• Fortnightly take-home: $2,587.40

VPS 5 (Grade 5.1, step 5.1.3 – $123,391)

• Annual tax: $31,020 + 37% × ($123,391 – $135,000) = $31,020 – $4,295.33 = $26,724.67 (note: 37% bracket applies only above $135,000; here it's below, so use 30% bracket: $4,020 + 30% × ($123,391 – $45,000) = $4,020 + $23,517.30 = $27,537.30. Actually correct: $123,391 is under $135,000, so 30% bracket. Let's recalc: $4,020 + 0.30 × ($123,391 – $45,000) = $4,020 + $23,517.30 = $27,537.30)
• LITO: $0 (income > $66,667)
• Medicare levy: 2% × $123,391 = $2,467.82
• Total deductions: $30,005.12
• Net annual: $93,385.88
• Fortnightly take-home: $3,591.77

VPS 6 (Grade 6.1, step 6.1.4 – $156,008)

• Annual tax: $31,020 + 37% × ($156,008 – $135,000) = $31,020 + $7,772.96 = $38,792.96
• LITO: $0
• Medicare levy: 2% × $156,008 = $3,120.16
• Total deductions: $41,913.12
• Net annual: $114,094.88
• Fortnightly take-home: $4,388.26

These examples use the 2026–27 tax rates and assume no other deductions. Your actual take-home may differ if you have HELP/HECS, salary packaging, or the Medicare levy surcharge.

What Changes Your Fortnight: Brackets, Medicare, and Super

The three main factors that shift your take-home are:

1. Tax brackets – As your VPS salary moves into higher brackets, the marginal rate increases. A $1,000 pay rise can leave you with only $630 to $550 extra after tax, depending on the bracket.
2. Medicare levy – A flat 2% means it scales with your pay. It’s not a bracket, but it’s a fixed proportion.
3. Super – While not deducted from your pay, the 12% employer contribution is part of your total remuneration. If you salary-sacrifice extra super, your taxable income drops, reducing tax and Medicare but also lowering your take-home cash.

Mobility Payment and Future Rises

Under the 2024 enterprise agreement, VPS employees also receive an annual mobility payment each 1 July of 1.25% of the top of their value range. For example, a VPS 4 gets $1,431 in July 2026. This is treated as ordinary time earnings, so it is taxed and attracts super. The next scheduled pay rise is 3% from 1 May 2027.

For more detail on how tax and Medicare affect your pay, see the Tax and Medicare guide. You can also use the Take-home pay calculator to estimate your own fortnightly amount.

Benchmarks for Comparison

The national minimum wage from 1 July 2026 is $26.44 per hour and $1,004.90 per week. The average full-time adult ordinary time earnings are $2,083.70 per week. VPS salaries range from well below average (VPS 1) to well above (VPS 7). Your take-home as a VPS employee will generally be higher than the minimum wage, but the exact amount depends on your grade and step.

Note: This is an estimate only and not a tax assessment. Your individual circumstances may vary.