Understanding VPS Salary Bands and Your Take-Home Pay in 2026-27

What Are VPS Salary Bands?

If you work for the Victorian Public Service, your pay is set by the VPS salary bands in the Victorian Public Service Enterprise Agreement 2024. These bands cover Grades 1 to 7, with multiple pay points (called progression steps) within each grade. From 1 May 2026, the current rates run from $56,677 at VPS 1.1.1 to $263,771 at VPS 7.3.5, as published by . A further 3% rise is scheduled for 1 May 2027.

Your exact salary depends on your grade, value range, and step – for example, VPS 4.1.1 earns $100,894 a year. The CPSU Victoria also notes a mobility payment of 1.25% of the top of each value range, paid annually on 1 July.

How Tax Brackets Change Your Fortnight

Your take-home pay is what lands in your bank account after the Australian Taxation Office withholds income tax and the Medicare levy. For the 2026–27 tax year, the resident tax rates are:

• $0 – $18,200: Nil
• $18,201 – $45,000: 15c for each $1 over $18,200
• $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000
• $135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000
• Over $190,000: $51,370 plus 45c for each $1 over $190,000

You also get the Low Income Tax Offset (LITO) if your taxable income is under $66,667. It can reduce your tax to zero but not create a refund.

Example: VPS 4.1.1 ($100,894)

• Taxable income: $100,894
• Tax on first $45,000: $4,020
• Tax on next $55,894 ($45,001–$100,894) at 30c: $16,768.20
• Gross tax: $20,788.20
• Less LITO: $325 – (1.5c × ($100,894 – $45,000)) = $325 – $838.41 = $0 (LITO phases out completely by $66,667)
• Net tax: $20,788.20

Medicare Levy and the Thresholds

The Medicare levy is 2% of your taxable income, but you may pay less if your income is below the single thresholds. The latest published single-person thresholds are $28,011 and $35,013. If you earn between these amounts, the levy shades in at 10c per dollar over the lower threshold. For full-time VPS employees earning well above $35,013, you pay the full 2%.

Continuing the VPS 4.1.1 example:

• Medicare levy: 2% × $100,894 = $2,017.88
• Total tax + Medicare: $20,788.20 + $2,017.88 = $22,806.08
• Annual take-home: $100,894 – $22,806.08 = $78,087.92
• Fortnightly take-home: $78,087.92 ÷ 26 = $3,003.38

Super Is Extra, Not Deducted

Your VPS salary is quoted as base pay. Under the Superannuation Guarantee, your employer pays an additional 12% of your ordinary time earnings into your super fund from 1 July 2026. This does not reduce your take-home pay – it’s on top. So your total remuneration package is base salary plus super.

For a VPS 4.1.1:

• Super: 12% × $100,894 = $12,107.28
• Total package: $112,001.28

What Changes Your Fortnightly Amount

Several factors can shift your take-home pay from the simple calculation above:

• Pay point progression: Moving up a step within your value range increases your base salary. For example, VPS 4.1.7 earns $114,476, giving a higher fortnightly amount.
• Mobility payment: The 1.25% annual payment (paid on 1 July) is treated as ordinary time earnings and taxed accordingly.
• Salary packaging: If you use salary sacrifice for items like a car or laptop, your taxable income reduces, lowering tax and Medicare levy.
• HELP/HECS repayments: These are deducted from your pay after tax, reducing your take-home further.
• Medicare levy surcharge: If you don’t have appropriate private hospital cover and earn over $93,000 (single), you pay an extra 1%–1.5%.

Using the VPS Salary Bands to Plan

Knowing your VPS salary bands helps you estimate your fortnightly cash. Use our Take-home pay guide with the current tax rates and Medicare thresholds. For a quick estimate, the Clearance tool can show you the effect of different pay points.

Remember, the figures here are estimates only – your actual withholding may vary due to payroll rounding, additional deductions, or the ATO’s tax tables. Always check your payslip against the official Tax and Medicare rates.

Summary

• VPS salaries from 1 May 2026: $56,677 to $263,771.
• Next rise: 3% from 1 May 2027.
• Tax brackets for 2026–27: progressive up to 45c.
• Medicare levy: 2% for most full-time earners.
• Super: 12% on top, not deducted from take-home.
• Fortnightly take-home for a VPS 4.1.1: about $3,003.

For more details on the agreement, see and the CPSU Victoria page.