Understanding the VPS5 Salary: Gross Pay, Package, and Take-Home Pay

What the VPS5 salary really means for your pay packet

If you are looking at a Victorian Public Service role, you have probably seen the term VPS5 salary in job ads. But what does that figure actually represent? Is it what lands in your bank account? Is it the total cost to the employer? The confusion between gross salary, total package, and take-home pay is common, and it can lead to surprises when you see your first payslip.

The VPS5 salary is set by an enterprise agreement

The Victorian Public Service has a single enterprise agreement that covers all general staff across state government departments. The agreement uses a classification structure from VPS Grade 1 to VPS Grade 7, with each grade split into value ranges (VR). For VPS5, there are two steps: VR 5.1 and VR 5.2. The exact pay rate depends on which step applies to the role. You can find the current rates on the page for the agreement, which sources data from the Fair Work Commission.

Because the VPS5 salary is negotiated through an enterprise agreement, it is not the same as a modern award rate. The Fair Work Ombudsman provides pay guides for award-covered employees, but VPS staff are covered by their own agreement. Always check the specific agreement rates rather than relying on award pay guides.

Gross salary versus total package

When a job ad says "$95,000 plus super", the $95,000 is the gross salary – the amount before tax and before the employer's super contribution. The total package would be $95,000 plus 12% super, which is $106,400. Some ads quote the total package, so you need to read carefully. The VPS5 salary figure you see may be the base salary or the package. The enterprise agreement lists minimum weekly rates, and the annual equivalent is the base salary.

From gross to take-home: tax and Medicare

Your take-home pay is what reaches your bank account after income tax and the Medicare levy. For the 2026–27 tax year, the tax rates are:

• Nil on the first $18,200
• 15 cents per dollar from $18,201 to $45,000
• 30 cents per dollar from $45,001 to $135,000
• 37 cents per dollar from $135,001 to $190,000
• 45 cents per dollar above $190,000

Plus the Medicare levy of 2% for most full-time workers. The latest single-person Medicare thresholds are $28,011 and $35,013 – if your taxable income is below $28,011 you pay no levy, and between $28,011 and $35,013 you pay a reduced rate. But a VPS5 salary will be well above these thresholds, so you pay the full 2%.

For example, if your VPS5 salary is $100,000 (gross), your tax would be roughly $24,667 plus Medicare of $2,000, leaving about $73,333 per year, or $2,820 per fortnight. But this is an estimate only – it excludes HELP/HECS, salary sacrifice, and payroll rounding.

Why the VPS5 salary can vary

The VPS5 salary is not a single number because of the value range steps. VR 5.1 is the lower step and VR 5.2 is the higher step. Progression between steps is usually based on time or performance. When comparing job offers, ask which step applies. Also check whether the role is full-time (38 hours per week) or part-time, as the weekly rate is pro-rata.

Super is on top, not deducted

A common mix-up is thinking super is taken from your salary. It is not. The employer pays 12% super on top of your gross salary, directly into your super fund. Your take-home pay is calculated on the gross salary only. So if your VPS5 salary is $100,000, your employer contributes $12,000 to super, but your tax is based on $100,000.

Use the right tools to compare

To avoid confusion, use the Take-home pay tool on this site to estimate what you will actually receive each fortnight. You can also check the Tax and Medicare guide for more details on thresholds and offsets. Remember that the Low Income Tax Offset (LITO) may reduce your tax if your taxable income is under $66,667, but a VPS5 salary is likely above that.

Final thoughts

When you see a VPS5 salary in a job ad, do not assume it is your take-home amount. Break it down: is it base or package? Which value range step? Add super separately. Then estimate tax and Medicare. The difference between gross and net can be 25–30%, so knowing the real figure helps you budget and compare offers fairly.

For the latest official rates, refer to the Fair Work Commission's Modern Awards Pay Database or the enterprise agreement itself. The Benchmarks page on this site also shows average earnings for context, but remember that VPS5 salaries are set by agreement, not by market averages.