BOARD FOR LAY MINISTRY LCA LAY WORKER SALARIES AND ALLOWANCES 2014

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1 BOARD FOR LAY MINISTRY LCA LAY WORKER SALARIES AND ALLOWANCES 2014 Preamble In 2010 the LCA General Church Council in consultation with the Board for Lay Ministry (BLM) and Commission on Salaries approved a new training and salary framework for lay workers employed in the LCA. The new structure is to be used in conjunction with the Position Classification and Training Document. A copy of this document is available from the Director for Lay Ministry, or the LCA Lay Ministry website, and is appended to the Lay Ministry Handbook. Determining the 2014 salary for existing lay workers Fair review processes Regular review processes should be used to assist in salary evaluation and advancement. It is critical that this process is fair and supportive, and is seen to be so by all involved. The process will give both parties a chance to reflect on how well the lay worker's short, medium and longer term ministry goals which make up their ministry plans are being met. Unrealistic expectations should be modified, additional training requirements identified, and clear, achievable goals should be set for the next review. If the review shows there is a mismatch between the employer s expectations and the lay worker s understanding of the role then it is a joint responsibility to address that. If a goal was unclear, or depended on things that were outside the control of the lay worker, then non-achievement of that goal shouldn t count against the lay worker. If the particular God-given strengths of the lay worker are not being effectively used in the position, then the employer should consider how the position can be modified to better use these gifts, and how to help the lay worker improve in any area of weakness that may be reducing the effectiveness of their ministry work. Advancement to the next paypoint on the salary scale Employers and lay workers will use an annual personal performance review process, to determine the satisfactory achievement of predetermined goals and completion of agreed requirements such as accreditation requirements or specific training that will enhance the individual's ability to undertake their role, as criteria for advancement. If the lay worker is assessed as achieving most of their goals and training requirements in a timely way, and meeting most reasonable expectations of their position, they may be advanced to the next paypoint. If the review process points to significant gaps in achievements and/or the need for further development of the lay worker s skills or knowledge in particular areas, then the salary paypoint may remain the same for another year, while the parties work together to revise goals and expectations and address development needs. Unless a position is redescribed and reclassified at the next level, or the incumbent successfully applies for a new position at a higher classification level, a lay worker s salary will not increase beyond the top paypoint within their position level. Lay Worker Salary Schedule

2 Determining the starting salary for new lay worker positions For new positions employers need to: 1. Develop a clear position description that sets out the purpose, nature and key responsibilities of the position (contact the BLM s office for examples and assistance). 2. Classify the position as a Level 1, Level 2 or Level 3 lay worker position by reference to BLM s Position Classification and Training Document. 3. Conduct a recruitment process, and then review the position description and classification with the prospective appointee. If the prospective lay worker has gaps in their prior training and experience that seem likely to limit their ability to meet the employer s expectations of the position in the short to medium term, the employer may decide to revise their expectations and redescribe and reclassify the position at a lower level in the first instance. 4. Determine the appropriate paypoint on the new salary scale - a) Non-accredited lay workers will normally commence and remain on paypoint 1 of the classified level until they have completed accreditation requirements. b) If the lay worker is already accredited the employer needs to take into account the prior training, qualifications, experience and attributes of the lay worker to determine the starting paypoint. For example, if the appointee for a level 1 position has just completed LCA accreditation requirements, and has spent the previous two post-school years as a part-time youth worker while studying, then a starting salary at level 1 paypoint 1 or 2 may be appropriate. If a level 2 appointee has previously worked for many years in a professional capacity relevant to their lay work position, the employer may decide that paypoint 3, 4 or even 5 within the level 2 scale is appropriate in this instance. LAY WORKERS SALARY SCALE Classification Full-time Salary ($) Hourly rate ($) Lay Worker Level 1 Paypoint 1 40, Paypoint 2 44, Paypoint 3 47, Paypoint 4 49, Paypoint 5 51, Lay Worker Level 2 Paypoint 1 49, Paypoint 2 52, Paypoint 3 55, Paypoint 4 58, Paypoint 5 61, Lay Worker Level 3 Paypoint 1 61, Paypoint 2 64, Paypoint 3 67, Paypoint 4 70, Paypoint 5 73, Lay Worker Salary Schedule

3 Definitions and explanatory notes 1. The hourly rate is based on a standard 38 hour week, in line with Fair Work Australia, Social, Community, Home Care and Disability Services Industry Award Lay worker positions will be classified by employers in accordance with the Position Classification and Training Document. 3. The starting salaries of new lay workers will be determined by the employer in consultation with the lay worker, based on the position classification and the prior training and experience of the lay worker. 4. Non-accredited lay workers will normally commence and remain on paypoint 1 of the classified level until they have completed accreditation requirements. 5. The BLM expects and encourages all lay workers to seek accreditation under the new guidelines, and urges employers to support them through the accreditation process. 6. Employers and their lay workers are encouraged to establish realistic and clear short, medium and longer term ministry goals for each position, and to conduct regular reviews of progress. Such reviews should take place at least once a year. 7. Lay workers who are assessed as requiring further development to enable them to achieve most of their goals will normally stay at the same paypoint for another year, with appropriate support from their employer and opportunities for the required development. 8. Lay workers who are achieving most of their goals in a timely way may be advanced to the next paypoint within their level for the following year. 9. Copies of performance review processes and guidelines for setting goals are available from the Director for Lay Ministry. 10. Lay workers being paid at the fifth paypoint of their classified level will not advance to the next level, unless their position has been redescribed and reclassified. 11. The recommended schedule will receive annual adjustments in line with LCA church salary schedule. 12. The guidelines above can be changed or altered through negotiation between employer and the lay worker to suit the lay workers role. 13. A lay worker may request a person of their choice to represent them and to be party to any discussions with the employer concerning a classification level or pay point. 14. Where a lay worker and employer can t agree on a classification level or pay point, the matter is to be referred to the Director for Lay Ministry or his representative for resolution. House Provided If the employer provides a house for the lay worker, an agreed rental can be deducted from the lay workers gross salary. The employer is encouraged to negotiate an agreed rental, considering the LCA guidelines and the local rental market. The LCA housing allowance is $15,400. Superannuation Employers are required to make a contribution equivalent to 9.25% of employee earnings to a complying superannuation fund on behalf of their lay worker. This will increase to 9.5% from 1/7/2014. These payments should be made monthly. Employers will be aware that the Federal Government s choice of fund legislation became effective from 1 July As part of the arrangements for choice you should be aware that not all employees may be eligible for choice so you should take care when providing a choice form to a lay worker. Employees who are exempt from choice are those whose contributions are required to be paid to a particular fund under any of the following: certain State agreement; an Australian Workplace agreement; a certified agreement under the Workplace Relations Act 1996; a certified agreement under the Industrial Relations Act Lay Worker Salary Schedule

4 Employers need to determine whether lay workers fall under the above exemption and, if they do not, provide a choice form when they commence employment. With effect from 1 July 2005 you are also required to have a default fund selected for any new employee who does not advise you which fund contributions should be allocated to. The preferred default fund for the LCA is the existing Lutheran Super Fund (the LCA Fund). The LCA Fund meets all the requirements of the choice legislation. Employees have the option of making voluntary superannuation contributions. Employee contributions may be salary sacrificed (ie deducted from pre tax salary), however it is recommended that employees seek financial advice before salary sacrificing superannuation contributions, to determine if this is the most tax effective method for their situation. Salary sacrifice contributions must be shown as employer or salary sacrifice contributions when remitted to the superannuation fund. NOTE: Additional information on superannuation can be obtained from: Executive Officer, Lutheran Super, 197 Archer St, North Adelaide SA 5006 Ph: Fax: , enquiries@lutheransuper.com.au Equipment Allowance It is recommended that if a lay worker owns a computer and or other equipment, and makes it available for employer use by agreement, the lay worker should be reimbursed an ad hoc allowance negotiated between the lay worker and the employer. Research Allowance $580 per annum. Pro rata for part time. Car and Travel Allowance The employer and lay worker should discuss compensation for the use of a vehicle in instances where the employee uses a personal vehicle for work. Where work usage of the vehicle is minimal, the reimbursement should be on the basis of per kilometre travelled. In this case the kilometre rate as set by the LCA is to be paid. Where the kilometres travelled for work purpose is high (i.e. over 18,000 km per annum), the LCA Car Allowance is to be paid. Motor vehicle allowance for tax purposes is shown on the annual Eligible Person Payment Summary. The current annual car allowance is $6,800 plus a travel allowance of 27 cents per kilometre. If travel exceeds 18,000 kilometres per year, an additional $117 per 1,000 kilometres is to be paid. Where no car allowance is paid, the current casual travel allowance of 71 cents per kilometre is to be paid. Travel reimbursement is not shown on the annual Eligible Person Payment Summary. Note: Travel between home and the regular workplace is considered to be a private expense by the taxation office, and travel allowance is not payable for this travel. Motor Vehicle Loans 1. LLL car loans are available to lay workers provided that: a) the lay worker is working in the LCA on at least a three quarter time basis b) the lay worker has a guaranteed term of employment within the LCA of at least three years c) the duties performed require the use of a motor vehicle. 2. Congregations (employers) may apply for an LLL car loan for their lay worker. The employer is then responsible for the repayment of the car loan (normally deducted from the lay workers salary. (GCC resolution 93/357, 8/10/1993). 3. The current maximum car loan available to lay workers is $16,000. Lay Worker Salary Schedule

5 Annual Leave Full-time lay workers - four weeks per year (20 working days). Part-time lay workers - pro rata. Personal/Carer s Leave Lay workers will be entitled to ten (10) days paid personal/carer s leave (including sick leave) for each twelve (12) months of service or a proportionate amount of personal leave for any period of less than twelve months. Unused personal/carer s leave will accrue over the period of employment. Personal/carer s leave can be taken: a) Due to illness or injury (sick leave); or b) To provide care or support for a member of your immediate family or household who requires care or support due to personal illness or injury, or an unexpected emergency (carer s leave). Upon termination of employment, no payment will be made for accrued personal/carer s leave. Part-time lay workers - pro rata. Parental/Adoption Leave After twelve months of continuous service lay workers are entitled to a maximum of 52 weeks of unpaid parental or adoption leave. The position must be held open for the lay worker under the same conditions as before the commencement of parental/adoption leave, unless the lay worker informs the employer that they will not be returning to work. Compassionate Leave Lay workers are granted a maximum of 2 days compassionate leave for each permissible occasion. Compassionate leave will only apply to an illness, injury or death of an immediate family or household member; any other compassionate leave will be at the discretion of the Employer. Unused compassionate leave will not accrue over the period of employment. In Service Training Leave Lay workers will be allowed up to five (5) days paid leave for each period of twelve months of service for agreed in-service training. The lay worker and the employer will discuss whether it is appropriate to increase this entitlement in those years when the LCA Lay Workers Conference is held. Unused leave for in-service training will not accrue over the period of employment. Workers Compensation Employers must ensure their lay workers are covered under the appropriate state workers compensation regulations. Long Service Leave Employers are required to make long service leave provisions for lay worker/s at the following rate: Full-time lay workers week s salary per year. Part-time lay workers - pro rata. The long service leave levy is to be paid into the Board for Lay Ministry s Long Service Leave Fund for Lay Workers by 30 th November each year. Police Checks Employers are reminded that a police check is essential when employing a lay worker. Lay Worker Salary Schedule

6 Safe Place Certificate Employers are reminded that a lay worker must have an up to date Safe Place Certificate. A refresher course is required every three years. Contact your district office for information. ChildSafe and Mandatory Reporting Employers are reminded that if the lay workers position requires either or both of these training requirements it is the employers responsibility to ensure that the lay worker has an up to date certificate. Contact your district office for information. Private Medical Insurance All lay workers are urged to take out private medical insurance cover. Fringe Benefits The LCA General Church Council, has resolved to extend the fringe benefits tax policy to include lay workers who come under the definition of religious practitioner as defined by the Australian Tax Office Using Australian Tax Ruling 92/17, the Board for Lay Ministry through its Director will advise lay workers and employers in the process for eligibility for fringe benefits tax exemption. Please contact the Director for the appropriate forms. If fringe benefits are paid for a lay worker, the employer must pay the fringe benefits tax on these benefits, unless it has been determined that the lay worker is eligible for the fringe benefits exemption as detailed above. Fair Work Australia Employers are required to provide all new employees with the Fair Work Information Statement as soon as possible after the commencement of employment. This statement provides basic information on matters that will affect your employment. If you require further information, you can contact the Fair Work Infoline on or visit Position Description and Employment Agreement The BLM strongly urges employers to ensure that there is in place a valid and current position description and employment agreement for lay workers. The Board can assist by providing suggested position descriptions and terms of employment. If you have any questions on any of the above issues please refer to the Board for Lay Ministry Handbook or contact the Director for Lay Ministry at the LCA National Office. Yours in Christ Nevin Nitschke Director Board for Lay Ministry director.layministry@lca.org.au Lay Worker Salary Schedule