Remuneration - OP Business Division Procedure

To be read in conjunction with

TO BE READ IN CONJUNCTION WITH (click on the hyperlink below to access)

Te Pūkenga Kaupapa-here | National Remuneration Policy

 Note:  This Former Otago Polytechnic Limited Policy has changed status to an Otago Polytechnic Business Division Procedure and will be read in conjunction with the approved Te Pūkenga policy/ies and be applied to our ongoing operations and activities until further notice.

Approval Date
10 January 2023
Approved By
People and Culture, Otago Polytechnic Business Division
Next Review
10 January 2024
People, Culture, Otago Polytechnic Business Division

This policy provides for a fair and transparent process for establishing, maintaining, and monitoring remuneration levels for all Otago Polytechnic (OP) staff; and for promotion and incremental progression in recognition of work performance and contributions to OP. 

This policy applies to all OP staff positions within OP.


Employment Relations Act 2000 and all subsequent amendments

Public Service Act 2020 and all subsequent amendments

Education and Training Act 2020 and

Education and Training Amendment Act 2021

Minimum Wage Act 1983 and subsequent amendments

Equal Pay Act 1972 and subsequent amendments

Equal Pay Amendment Act 2020


This OP Business Division Procedure: Remuneration to be read in conjunction with Te Pūkenga Kaupapa-here / Remuneration Policy will be maintained in a way that reflects the following principles and values:

  •  Alignment with the market.
  • Fairness and equity.
  • Consistency of approach and application.
  • Financial sustainability and accountability.
  • Flexibility


Remuneration will be applied as detailed in the relevant OP Standard Operating Procedures (SOPs) relating to remuneration and as per relevant employment agreements.


OP offers generous terms and conditions of employment of which base salary is one component.  When considering the remuneration of OP staff, it is important to remember the OP staff benefits that exist for OP staff including generous leave entitlements, professional development opportunities, staff discounts, and flexible work practices. 



Automatic Increments - Annual salary increases up the relevant scale on completion of each year of service.

Salary Progression - Refers to increases from one Grade to the next highest Grade for OP Professional staff and for OP Academic staff movement within the scales that require proof of development.

Academic Promotion - Refers to the process of moving from one OP academic scale to another. (i.e., OP Lecturer to Senior Lecturer, Senior Lecturer to Principal Lecturer, Principal Lecturer to Associate Professor, Associate Professor to Professor).


Starting and Review of Salaries

The primary considerations in determining the starting salary of an OP staff member are relativity and the skills and experience of the new OP staff member in relation to the role they will be performing. 

  • Professional OP staff roles are evaluated and assigned to a Band. The salary Grade and Step that an individual is assigned will be within the Band of the role. OP Bands run from B to F reflecting factors such as the level of skill, accountability, and complexity of the role. Each Band is divided into Grades 1, 2, and 3.
  • For OP Academic staff this will include an emphasis on qualifications and expertise in their field and teaching experience, and then alignment to the relevant academic scale, e.g., OP Lecturer, Senior Lecturer, Principal Lecturer, Associate Professor, and Professor.


All remuneration offers must be made in line with Te Pūkenga Kaupapa-here / Interim Delegations Policy and OP Business Division Procedure: Delegations from the Te Pūkenga to the Executive Director and Authorities and Sub Delegations from Executive Director and are only formal once issued in writing by the OP People, Culture and Safety. Formal Leaders must consult with OP People and Culture before making any salary offer to a new or existing staff member.  

Salaries of all OP staff will be reviewed annually in line with this policy, relevant OP SOPs, and employment agreements. Individual salary movements can be either by general wage increases, increments, progression, promotion, or change to role and job evaluation.

For OP academic staff there will be at least one (1) promotion round each year. Application deadlines and meeting dates will be published on the OP intranet (Tūhono) and will give sufficient notice to staff to prepare their applications.

Applications for OP Associate Professor/Professor occur at least every two (2) years as determined by the OP Executive Director.

OP also offers general salary increases through collective and individual employment agreement negotiations. 


Living Wage

OP pays at least the Living Wage. The living wage changes annually and OP will ensure it keeps up with those changes.



Where OP believes there is a need, allowances may be used to remunerate special responsibilities, market alignment, or key skills. Allowances will be offered in writing, and specific details of the terms and conditions associated with the allowance will be advised (e.g., the reason for the allowance, the time frame for payment of the allowance).



Bonuses may be awarded for additional work or exemplary performance. These will only be offered paid in exceptional circumstances.  Any applications for a bonus must be made by the Formal Leader, who must outline the exceptional circumstances that they believe justify a bonus payment. The application must be endorsed by the relevant OP Deputy Chief Executive before final approval is considered by the OP Deputy Chief Executive: People, Culture and Safety and OP Executive Director.


Non-monetary Recognition and Rewards 

In addition to base salary OP has a number of non-monetary initiatives to reward OP staff.  These include five (5) weeks’ annual leave, long service leave (for OP professional staff), and staff discounts on OP programmes of study/course(s), as well as access to discounts at local retailers.  In exceptional circumstances, additional rewards or benefits may be offered to an OP staff member (e.g., additional leave, professional development funding, or similar), and these require the approval of  OP People, Culture and Safety or OP  Executive Director.  

Version Control


Policy Version: V2