Human Resources

University Policy on Performance Allowance

Policy No.
Human Resources
Authoring Organisational Unit
Human Resources - Central Unit
Date Approved
25/06/2012 Revised 27/06/2014
Next Review Date
Approving Body
Senior Deputy Vice-Chancellor And Registrar

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The University of Western Australia

University Policy on: Performance Allowance

Purpose of the policy and summary of issues it addresses:

This policy defines the nature and purpose of the Performance Allowance, which may be applied when overall outstanding performance has been demonstrated. It sets out eligibility criteria and other conditions that apply.

This policy does not apply to casuals.


"Approved Delegate" means a position granted authority to act on behalf of the Vice Chancellor with varied levels of authority in line with the University's Delegations.

"Base Salary" means the salary point in the relevant University salary scale paid to the employee concerned.

"Employee" means a person employed by the University.

"PDA" means Performance and Development Appraisal.

"Supervisor" means the person who is responsible for day-to-day supervision of the employee.

"University" means The University of Western Australia.

Policy statement:

This policy describes the purpose and principles unique to performance allowance. The policy must be read in conjunction with University Policy: Discretionary Allowances & Payments, which defines the core principles, approval, review and governance and accountability requirements common to all discretionary allowances.

A comparison table of discretionary allowances, which can be used to determine which allowance is applicable to a particular circumstance, can be found at Overview of Discretionary Allowances.

1 Nature of Allowance

Performance allowances are not for recognition of meeting the expected requirements of the role. A Performance Allowance should only apply where an employee performs outstandingly and/or beyond the expectations of the position or role.

Performance allowances are not normally paid when the employee has not reached the top of the salary range. An accelerated increment (see University Policy: Incremental Progression) is the most appropriate reward in this circumstance. Professional staff may also be eligible to apply for Salary Progression.

1.1 Where overall outstanding performance is confirmed through the Performance and Development Appraisal (PDA), the payment of a performance allowance may be recommended.

1.2 In considering an allowance, regard should be had for the University Policy: Reward and Recognition. Often what an employee values may be a non pecuniary benefit, such as a professional development opportunity or conference attendance.

1.3 Performance Allowances should recognise the outstanding contributions of staff at all levels, not just those who, for a particular reason at the time, have a higher profile than their colleagues.

1.4 Performance allowances shall be a fixed dollar sum not normally greater than 5% of base salary .

1.5 Performance allowance is a temporary allowance, which attracts 9% employer superannuation contribution into an accumulation account.

1.6 The recommendation for and amount of Performance Allowance must be considered in conjunction with other allowances or benefits the employee is receiving.

1.7 When an employee successfully applies for promotion or reclassification through normal procedures resulting in an increase in base salary, the performance allowance will be reviewed to determine if the allowance or level of the allowance is appropriate in the context of the new position. The allowance may be absorbed or reduced at this time.

2 Eligibility

2.1 Application for a performance allowance will be forwarded by Deans (or equivalent) to Human Resources when outstanding performance has been identified as a part of the annual PDA process.

2.2 Employees who are subject to disciplinary or unsatisfactory performance procedures may have any performance allowance ceased.

3 Application Process

3.1 Written requests for performance allowances should include a detailed justification for the remuneration and be forwarded to the Dean (or equivalent) by the Head of School/Section or supervisor.

3.2 Deans (or equivalent) will be responsible for -

3.2.1 formally assessing applications;

  • Where the amount of the Performance Allowance is up to and including $10,000, approval may be granted by the Dean or equivalent.
  • Any higher amount will be assessed by the Dean before sending to Human Resources, who will submit the application to the Standing Remuneration Committee for approval.

3.2.2 forwarding all applications to Human Resources with the accompanying Discretionary Allowances Form; and

3.2.3 advising all candidates of the outcome of the application (only after the final approval).

Supported applications should include a written recommendation on the Discretionary Allowances Form stating:

-confirmation of the employee's outstanding performance and on what basis it has been considered as exceptional and deserving of a performance allowance,

-the extent to which all employees are given equal consideration for rewards and recognition in the business unit and having regard to achievement relative to opportunity, and

-the amount/increment level of the proposed performance allowance.

4 Term of Allowance

4.1 Performance allowances may be recommended for a twelve month period, or in exceptional circumstances and on the approval of the Standing Remuneration Committee, for a two year period.

5 Unsuccessful Applications

5.1 In instances where the Standing Remuneration Committee does not concur with a Dean or equivalent's recommendation, the Dean (or equivalent) shall be notified in writing.

5.2 If an applicant disagrees with a Dean's unfavourable assessment, a request for review (in writing) can be forwarded to the Standing Remuneration Committee, through the Director, Human Resources.

Related forms:

Discretionary Allowances Form

TRIM File No:


Contact position:

HR Services-Employment

Related Policies or legislation:

Performance Appraisal Report - Policy and Procedures

Professional Development Review - Policy and Procedures

Overview of Discretionary Allowances

University Policies on:

Discretionary Allowances

Market Allowance

Retention Allowance

Bonus Payment

Attraction Allowance

UWA Code of Ethics and a Code of Conduct

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