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Remuneration Policy
Table of Contents
1. Preamble
2. Definitions
3. Role of sub-committees in remuneration evaluation
4. Methodology to calculate base of remuneration
5. Benefits
6. Perks
7. Incentives and 13th cheques
8. Sitting Fees
9. Taxation and statutory levies
10 remuneration during confinement
11.Fixed Term Contracts
Annexure
A. Extract from the Employment of Educators Act
B. Grading scales applied by G.D.E. for educators
C. Grading scale used by G.D.E. for non-educators
D. Application form for application to G.D.E. for additional remuneration
1. Preamble
This Policy takes cognizance of:
Legislative Environment
The School's employment practices and policies are subjected to the following laws:
National Educators Policy Act 27 of 1996 as amended
South African Schools Act No 84 of 1996 as amended
Employment of Educators Act No 76 of 1998 as amended
Regulations regarding the terms and conditions o Employment of Educators
Public Service Act 1994 as amended
Income Tax Act No 58 of 1962 as amended
Basic Conditions of Employment Act No 11 of 2002
Labour Relations Act No 12 of 2002
The G.D.E. issued a directive, referred to as circular 9 of 2003, prohibiting receipt of
additional payment by G.D.E employees, except with specific written authority to be
obtained per employee.
Determinants of remuneration
The G.D.E scales are based on two main criteria namely years (unbroken) of work related
experience and work related qualifications, rating the employee on a Relative Education
Qualification Value (REQV) scale. Employment posts are awarded a Post Level rank. Based
on this a remuneration range (out of 12), which is subdivided according to notches
(out of 16-18), is determined on a table and the base level of remuneration is
determined.
The History of remuneration at Saxonwold Primary
Employees were in the past remunerated additionally for additional duties or promotion
based on the merits of each case in the past.
This policy will be applied with effect from 1 January 2004.
No employee's remuneration will be reduced due to the implementation of this policy.
2. Definitions
Base remuneration is the amount as determined by G.D.E. scales or contract before any
allowances, perks and subsidies.
A Temporary Employee is an employee that is not a fixed term employee or a fixed term
contractor.
A Permanent Employee is any person that is entitled to remuneration that is not a fixed
term contractor and has worked for the school for a period exceeding 40 hours in
month.
Dependent for purposes of the implementation of this policy only, is defined a
someone for whom the caregiver has taken financial responsibility. The S.G.B. will accept
the name of the dependent on a Saxonwold benefit fund nomination form or on a list
of medical aid dependents as proof that financial responsibility has been taken or
accepted by this body by finance committee.
Relative Education Qualification (REQ) defined in the Employment of Educators Act, is
based primarily on the number of recognized prescribed full-time professional or
academic years of study at an approved university, Technion or college, taking into
account the level of school education attained.
Post level defined inn the Employment of Educator act, is the rating accorded by the Act
to a specific employment post.
remuneration Range defined in the Employment of educators Act, refers to a group of
remuneration levels on the grading scales that are applied by the G.D.E.
remuneration Notch defined in the Employment of Educators Act, refers to any one of
the sub-divisions of a remuneration level on the grading scales that are applied by the
G.D.E.
The School Management Team consists of the Principal and the Schools Heads of
department.
3. Role of sub-committees in remuneration evaluation
3.1.1. It is the role of the Finance Committee to apply the remuneration policy subject to
afforadability and cash flow.
3.1.2. It is the role of the Human Resources Committee (HRC) to determine the
remuneration range and notch of each employee by applying the appropriate
REQV rating and post level and to inform the Finance Committee.
3.1.3. The School Management team, in consultation with the Finance Committee, is
responsible to draw up the contracts for fixed term contracts.
4. Methodology to calculate base remuneration
4.1. The S.G.B. used the G.D.E. scales and directives as a guideline for its remuneration
policy for all categories of employees.
4.2. Employees not employed by the G.D.E. will be paid in terms of a remuneration
range and notch as if they were employed by the G.D.E
4.3. The S.G.B. will consider topping up G.D.E. employees who have year of broken
service not taken into account by the G.D.E. The aim will be an equal treatment of
G.B and G.D.E. employees, according to G.D.E. capping, and if finances are
available.
4.4. Calculating placement on the scales to determine base remuneration
4.4.1. The S.G.B. will not calculate service on the basis of years employed by the
G.D.E., but by the years employed as an educator at a registered school or
for non-educators years of service in the sector in which they are employed.
This calculation will not apply to remuneration in regard to severance.
4.4.2. When severance conditions are considered, the years of continuous service
in this school will be considered.
4.5. Employees who are under qualified in terms of G.D.E scales, may be paid as if they
had the requisite qualifications where this allows the S.G.B. to secure an equity
appointment or exceptional skills or experience, provided that the employee
undertakes to eliminate the deficit and is particularly monitored in this regard.
4.6. Annual increases will be timed to coincide with those of the Department and will be
of the same quantum.
4.7. Remuneration for acting in a position should be, as per G.D,E guidelines. Currently
an employee will be remunerated at the higher level after acting for more that six
consecutive weeks in a position to paid back from the first day appointed in the
acting position.
4.8. Where no specific reference to an item exists in the schools remuneration policy,
the G.D.E. scales, guidelines and policies will guide it.
5. Benefits
5.1. The S.G.B. will maintain a medical benefit fund equivalent to that of the G.D.E.
subject to the same G.D.E. limits.
5.1.1. This fund will be optional for all employees who cannot make us of the
G.D.E. scheme and who have been employed for more than three months.
5.1.2. No fees will be paid in lieu of the medical aid benefit.
5.2. The S.G.B. will investigate the provision of a retirement benefit fund and life cover
to employees subject to it being financially and administratively feasible.
5.3. The S.G.B. will provide a housing subsidy to all employees not employed by the
G.D.E. at the same level and based on the same qualifying criteria.
6. Perks
6.1. The school grants a 90% subsidy for school fees to employees whose Dependants
attend the school.
6.2. A Bursary Scheme is available to all employees:
6.2.1. The study courses have to be authorised in advance by the Principal after
written motivation by the employee as to why the course will improve skills
and ability to meet deliverables.
6.2.2. The study fees of the employees will be paid in advance, as a loan, upon
proof of registration.
6.2.3. Should the employee not pass, the loan has to be paid back to the school.
6.2.4. Should the employee pass, the loan will prescribe with an equal length of
service as the length of the course, commencing after completion of the
course.
6.2.5.Should the employee leave the employ of the school before the full period
has prescribed, the loan becomes refundable, on a pro-rata basis, to be
collected from the employee in the last month of service. This applies to all
new loans.
6.3. Perks are subject to taxation.
7. Incentives and 13th cheques
7.1. A 13th cheque, calculated on the same percentages and ratios as the G.D.E. , based
on the determined base remuneration of the employee, will be paid to all Governing
Body paid staff members at the end of each year, pro-rata from the time they
started in that year, or on the full year if a full year has been worked.
7.2 The governing body will determine in November of each year, subject to affordability
determined, not by reserves available, but by the nett cash in and outflow of the
school, whether incentives in the form of remuneration will be paid to staff members
(both G.D.E and S.G.B. employed), for performance other than that defined in their
respective job descriptions.
7.2.1. The amount of these incentives paid to each staff member will be determined
by means of a scale to be formulated, such scale to be based on the results
of the appraisals (IQMS) and performance excellence. The input regarding
performance excellence will be that supplied by the Principal in conjunction
with the S.M.T. and Human Resources Committee, and related to the
pre-determined scale.
7.2.2. While there is an understanding that the S.G.B. will each year determine
whether such incentives will be paid, there is no compulsion that such
incentives will be paid and staff should not be expectant thereof until such time
as determined by the Finance Committee in November of each year, based on
nett cash etc.
7.2.3. Where staff members perform duties in addition to their specified job
descriptions, the Governing Body will determine remuneration for such duties
and this will be paid monthly to the applicable staff members.
7.2.4. In respect of G.D.E. employees, all additional incentives paid in the form of
remuneration must be subject to Circular 36/2006, with the provisio that
application has been made to the G.D.E. , and such application has been
approved by the G.D.E.
7.2.5. Employees partly remunerated by the G.D.E. may be paid by the S.G.B. in terms
of a different level and notch.
7.2.5a) It must be justified in terms of the G.D.E. grading scale and the S.G.B.
will pay the differential.An example is where the S.G.B. promotes an
employee before the G.D.E. does.
7.2.5b) Full S.G.B. approval must be obtained.
7.2.6. In line with the guidelines of the G.D.E.., when an employee is promoted, the
minimum level of increase is a notch.
8. Sitting Fees and Transport allowance.
8.1. In line with G.D.E. guidelines and the ethos of the school, the S.G.B. wishes to
encourage employees to network with other professionals in various representative
bodies.
8.2. In order to compensate employees for their time and cost, it is proposed that the
S.G.B. pays sitting fees and travel costs on the following conditions:
8.2.1. The employee must be an official representative or duly elected.
8.2.2. The H.R.C. must draw up an official list, which may be duly amended, of
official bodies on which the school cab be represented.
8.2.3. Membership of the S.G.B. and it's sub-committees are specifically excluded.
8.2.4. The rate of recompense is per an official departmental scale.
8.2.5. The compensation is paid for periods outside "normal" working hours e.g.
evenings and weekends.
8.2.6. The employees duly accounts not only for the attendance, but also i.t.o.
qualitative feedback.
8.2.7. The employee's behavior is at all times within the parameters of ethics and
good manners as the S.G.B. will expect from an ambassador of the school
or as is contained in the school policy.
8.3. Sitting fees and travel costs will be paid to all employees, who meet the conditions
in 8.2 above, irrespective of whether they are G.D.E. employees or not.
8.4. Where employees have the recourse to be remunerated a claim will not be
considered.
9. Taxation and Statutory Levies.
9.1 The S.G.B. will not enter into any transaction with an employee that has the sole
objective to avoid taxation and other levies.
9.2. The S.G.B. cannot be responsible for the taxation effect of renumeration of
employees as it is entirely outside the control of the employer.
9.3. Once off adjustments to correct previously incorrect accounting treatments will not
set precedent.
9.4. Employees are to be informed of their duties to the South African Revenue Services
and the employer's roles and duties as a collection agent for the South African
Revenue Services.
9.5. The S.G.B. cannot consider arguments for remuneration based on employees' take
home pay.
10. Remuneration during confinement
10.1. In line with G.D.E. principles, the S.G.B. will continue to remunerate employees
while on leave due to confinement. Currently this will be for 84 consecutive
(including weekends and public holidays) working days.
11. Fixed Term Contractors
11.1. None of the other points of this policy will apply to fixed term contractors.
11.2. The Fixed Term Contract have to be in writing and must clearly state:
11.2.1. The Period of the contract.
11.2.2. The contract fee.
11.2.3. The requisite notice period.
This policy was approved at a meeting of the Saxonwold Governing Body held at Saxonwold
in 14 October 2006 where a quorum of members were present. |
