Adviser Remuneration

Framework
Explanatory Note
February 2011

The Adviser Remuneration Framework is a set of market-based, long and short term
remuneration rates.

AusAID’s Adviser Remuneration Framework has three main objectives:

- Market-tested competitive remuneration – to ensure AusAID is not paying above market
value for commercially contracted advisers.
- Consistency – to remove the potential of over-paying advisers by capping remuneration
and minimising scope for negotiation through a standardised remuneration scale.
- Value for money (VFM) – to demonstrate VFM achieved from advisers by applying
market-tested remuneration rates and an adviser performance assessment system.

AusAID-funded advisers provide technical and/or managerial expertise and advice on the
strategic direction and/or implementation of the Australian aid program. Advisers may
provide services to AusAID directly, or to one of the agency’s development partners.

This Remuneration Framework only applies to AusAID-funded advisers that are

commercially contracted by AusAID directly, or through a managing contractor. These
are organisations that have a commercial contract with AusAID to deliver services – which
may include to source, recruit and manage the performance of individual advisers – on behalf
of the Australian aid program.

The Framework does NOT apply to:

- Australian government officials (including those in advisory roles) engaged through
employment contracts on Australian Public Service terms and conditions.
- Advisers procured and engaged by partner governments, bilateral or multilateral
organisations, using these agencies’ own procurement processes.
- Humanitarian and emergency response personnel, volunteers and grant recipients.

Under the Framework, there are four factors which determine adviser remuneration:
- Duration of engagement (whether the adviser is long-term or short-term).
- The type of expertise required for the activity (the professional discipline sought).
- The level of responsibility attached to the adviser (there are four job levels in the
Framework).
- The adviser’s credentials/CV/past performance record (these determine at which pay
point in the remuneration range an adviser is paid).

An adviser’s fee must remain within the remuneration ranges established in the Framework.
These ranges are set out in Annexes 4 and 5. In principle, the remuneration rate offered
should not exceed the market reference point (MRP). The MRP is the competitive position for
each professional discipline and job level. These are set out in Annexes 2 and 3. Paypoints
above the MRP represent premium rates which may be offered for scarce skills or outstanding
and verifiable performance records. Positions which require premium rates to attract suitable
candidates, or the offering of a premium rate to a candidate, require a justifiable business case
and the approval of a First Assistant Director General.

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All design documentation and Terms of Reference that involve long and short-term adviser
positions must specify the discipline category and job level required (for each adviser
position) and must disclose the relevant remuneration range at advertising. All Requests for
Quotations/Proposals/Tenders must comply with the Framework for adviser positions.

Performance is a key aspect of ensuring effectiveness and value for money. The Framework is
linked to AusAID’s contractor performance policy and procedures.

Short-term advisers (engaged for less than 6 consecutive months) are not entitled to benefits
in addition to their remuneration, but all work-related expenses will be reimbursed at cost.
Long-term advisers (engaged for more than consecutive 6 months) may be eligible for the
following additional benefits:
- Mobility Allowance: intended to address cost of living differences and other impacts
associated with taking up a position in a country other than an adviser’s home country.
This allowance is calculated as a percentage of salary, depending on whether the adviser is
accompanied or unaccompanied. This allowance is paid at AusAID’s discretion, and is
dependent on the provision of appropriate evidence that the adviser does not usually
reside in the country where they will be required to work.
- Special Location Allowance: this is a country-specific income supplement for
locations specified by AusAID in its conditions for overseas service. Eligible locations are
currently Baghdad, Kabul, Oruzgan Province, Islamabad, Pakistan and remote localities
outside capital cities as determined by AusAID.
- All work-related expenses will be charged at cost on a reimbursable basis.

How to use the Framework:

Determine whether a short term (< 6 consecutive months) or long term

(> 6 consecutive months) advisory input is needed
Identify the expertise – the professional discipline – required (Annex 2)
Identify the level of responsibility – the job level – the adviser will have (Annex 3)
Examine the candidate’s CV and any past contractor performance
assessments/references
Use the Remuneration Tables (Annexes 4 and 5) to determine the appropriate fee rate
for the preferred candidate – this should fall between the Entry Rate and the
Market Reference Point (MRP) – the MRP is the competitive point for each
discipline and job level.
The approval of the appropriate AusAID First Assistant Director General is required to
negotiate a rate above the MRP.

Annex 1 – Remuneration scenarios

Annex 2 – Discipline categories

Annex 3 – Job level descriptions

Annex 4 – Remuneration tables for short-term advisers

Annex 5 – Remuneration tables for long-term advisers

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Annex 1 – Remuneration Scenarios

Scenario 1 – an Education adviser for the Government of Papua New Guinea

AusAID has approved a Government of Papua New Guinea request to fund and engage an
adviser for 12 months to provide in-line support to the Department of Education, to assist with
the development of a new primary school curriculum. AusAID and the Government of PNG
have jointly developed Terms of Reference (TOR) for the position. Requirements include up to
10 years of international experience in curriculum development, combined with practical
teaching experience and a strong understanding of development issues in the Pacific as they
relate to primary education.

The TOR is finalised by matching the requirement to the applicable remuneration range in
AusAID’s Adviser Remuneration Framework. In accordance with the Framework, experience
of up to 10 years is classified as a Job Level 2. Education expertise is classified as discipline
group B. The adviser will be engaged for more than 6 months and so is classified as long-term.

Based on these criteria, the remuneration range for this position is $8,061 – $10,076 per
month (which represents the entry rate to the market reference point), plus applicable
allowances. This remuneration range must be disclosed in the TOR at advertising.

It is decided that the adviser will be engaged through an existing AusAID-funded Support
Facility. The Facility Manager (a managing contractor) is tasked with sourcing and engaging
the adviser. The TOR are advertised in local and international media.

Once a preferred candidate has been identified, the final remuneration pay-point within the
advertised range will be determined based on the candidate’s CV and any past performance
ratings. The candidate has not worked previously for AusAID and so does not have a past
performance record. However the candidate has provided AusAID (as requested by the
activity manager) with positive referee reports from work with other donors. The candidate
has 15 years of relevant experience. While this exceeds the stated requirements, there is
strong and healthy competition for this role – so it is difficult to justify premium rates. The
remuneration offer made to this candidate should therefore not exceed the market reference
point of $10,076 per month. The preferred candidate will be relocating from the UK, but will
not be bringing family.

An offer is made to this candidate of $10,076 per month remuneration, plus a mobility
allowance of $1,569 per month (at the unaccompanied rate). Relocation expenses and
rental costs in PNG will be reimbursed at cost up to the limits outlined in the Framework.

On completion of the assignment, the Facility Manager must complete an adviser performance
assessment and register it with AusAID in line with the Contractor Performance Assessment
Policy.

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Scenario 2 – A Health Adviser for the Government of Indonesia
AusAID has completed a design for a new health sector activity in Indonesia. The estimated
value of this activity is $45 million over 3 years and it is decided that AusAID will conduct an
open tender process to identify an organisation appropriate to deliver the activity.

Of the core advisory positions identified in the design, one - Development Specialist – HIV
and AIDS – requires more than 10 years experience in HIV and AIDS prevention to provide
technical advice and managerial expertise to the Indonesian Ministry of Health. In line with
the Adviser Remuneration Framework, this position is classified as a Job Level 3; professional
discipline group B; and as the adviser will be engaged for more than 6 months is classified as a
long-term position. Accordingly, the remuneration range for this position is $10,412 –
$13,015 per month (which represents the entry rate to the market reference point) plus
applicable allowances. This remuneration information – replicated for all of the core advisory
positions identified in the design – is included in AusAID’s Request for Tender.

AusAID receives a number of bids for the activity, each of which nominates a core team of
personnel including a Development Specialist – HIV and AIDS. The preferred tenderer has
included in their bid an escalation factor of 3% on all advisers’ remuneration over the three
year course of the contract, which AusAID accepts as reasonable. AusAID accepts this bid,
with the contract finalisation subject to the preferred tenderer negotiating contracts with the
core advisory team that accord with the Adviser Remuneration Framework.

The preferred tenderer’s candidate for the position of Development Specialist – HIV and AIDS
is an Indonesian national, currently based in Aceh, who would need to relocate to Jakarta
where the head project office will be located in order to implement the activity. Although the
adviser is an Indonesian national, she has been selected for this position through an open
international tender process. The Adviser Remuneration Framework should therefore be
applied to determine the adviser’s final remuneration.

The adviser’s CV indicates that she has 15 years experience in public health, including a
master’s degree from an internationally recognised institution. On this basis, it would be
appropriate to offer the candidate a remuneration rate of $13,015 per month, which
represents the market reference point for this remuneration range. The remuneration will
increase at the fixed rate of 3% per year, as nominated by the tenderer in its financial proposal.

Because the adviser resides in the country where the work will be undertaken, no mobility
allowance is payable. However, because the adviser is currently based in a different
province and needs to relocate to Jakarta, AusAID agrees to reimbursement of relocation
expenses (including housing costs up to the limit specified by AusAID) at cost.

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Scenario 3 – A Senior Institutional Reform Adviser for the
Government of Kiribati

The Government of Kiribati has requested AusAID’s assistance to restructure the publicly-
owned shipping transport authority in order to improve its productivity. It is agreed that an
initial feasibility study should be undertaken to examine all options, including privatisation.
AusAID and the Government of Kiribati jointly draft the Terms of Reference (TOR) for this
task, and agree that a very senior and experienced professional is required to conduct the
study over a period of up to 60 days over a four month period. The Feasibility Study TOR
specify that the adviser must have more than 20 years relevant experience with the
management and reform of publicly-owned enterprises, and a solid knowledge of economic
development in the Pacific.

Under the Adviser Remuneration Framework this position is considered to be short-term, and
falls under professional discipline D, Job Level 4. Initial market analysis indicates that the
market for this expertise is limited and on the basis of this evidence the First Assistant
Director General (FADG) approves advertising the position at a remuneration range of $774 –
$1161 per day (which represents the entry rate to the maximum rate payable, and for
which FADG approval is required).

AusAID receives a number of applications for this position, and submits them to a panel
composed of AusAID representatives, an independent expert and the Government of Kiribati.
The panel find that only one applicant fully meets the requirements of the role. This applicant
also has a very good performance record with AusAID. Based on the panel’s recommendation,
the program area makes a case to the FADG to approve an offer that falls within the premium
rate range as advertised.

The adviser will need to travel from Australia to Kiribati during the assignment. The adviser
will be paid per diems; and accommodation, travel and any other work related expenses will be
reimbursed in line with standard AusAID rates for short-term travel.

Scenario 4 – A Pacific Region Health Advisory Facility

AusAID has approached the market to establish a Facility to provide health sector expertise to
AusAID’s aid program in the Pacific region. The core Facility advisory team consists of a
Facility Director and four long-term technical advisers. There are also three administrative
positions. AusAID’s Request for Tender has included remuneration ranges for all core
personnel (that is, all personnel except the three administrative roles) in line with the Adviser
Remuneration Framework. After a competitive tender process a successful tenderer is
identified, who is based in Sydney. The nominated Facility Director will be relocating from
interstate while one of the technical advisers will relocate from overseas. Both are entitled to
reasonable relocation expenses – as agreed by AusAID – to be reimbursed at cost.
Mobility allowance is payable to the adviser relocating from overseas. No mobility
allowance is payable to the Facility Director, who is relocating from within Australia.

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Annex 2 –Professional Discipline categories

Discipline Group A Discipline Group B

General Data and Information Agriculture/Rural Information Systems
Administration and Services Development Communications
Corporate Services Documentation and Records Agricultural Extensions Data Communications and
Administrative Services Management Agro Infrastructure, incl:
Contracting and Computers/Communications & Industry/Agribusiness Network administration
purchasing Technical Support, incl: Management Voice communications
Facilities/Travel Hardware, software and Agronomy Systems software design &
Program Budgeting training Fisheries implementation
Administrative Services Web maintenance/Homepage Forestry Large scale data
Printing/Graphics & design Livestock management
Cartography Natural Resource - System design
Program Budgeting Accounting, Audit and Management IT Engineering
Human resources Statistics Tree Crops
administration Accounting Logistics
Financial management Internal Audit Public Health
Public affairs and Statistics Nutrition Education
communication Nursing Education
Occupational Health Training

Social and Political Science

Gender/Women in Development
Public sector management/public policy
Social sciences/anthropology
Social/Political sciences
Sociology, incl:
Gender
Indigenous People
Public Administration
Resettlement/reconstruction
Social Assessment & Participation
Human Resources Development
Discipline Group C Discipline Group D
Biological Sciences Economics/financial Finance and Legal (specialised)
and Ecology analysis Investment Deregulation
Biological Sciences and Economics/financial analysis, (specialised) Judicial Strengthening &
ecology incl: Banking Regulation
Biotechnology Project feasibility study Build Operate Transfer
Environmental Sector study (sectoral/country level) Institutional reform
Management, incl: Econometrics modelling Capital Markets Organisational planning
Assessment/Monitorin Environmental economics Finance/Fund and management
g Fiscal Management/Cofinance Strategy development
Biodiversity International trade/Finance Private sector development
Climate change Labour economics/employment Guarantee/Insurance and restructuring
Waste Macro-economics (including International trade Private Sector
Natural resources policy) Investment Development/Privatisation
Pollution Management accounting Public/Private Public enterprise
Micro-economics Partnerships management and
Project Monetary Sector Pricing/Tariffs restructuring
Management Poverty Specialised Finance
Country Operations Procurement / Public Financial (insurance, social
Management Management security, pension
Project monitoring, schemes)
operations & evaluation Industry
Design Mining
Geology
Legal (General) Petroleum Gas
Power
Medicine (General) Telecommunications

Engineering
Architecture Transportation, incl:
Chemistry Highways, Ports, Railway
Carbon market Water/Sanitation/Environmental
Clean development Services, incl:
mechanisms Environmental Services
Energy Rural Water and Sanitation
Environmental Sector Reform (Regulation and
engineering Policy)
Urban water and sanitation,

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utility management

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Annex 3 – Job level descriptions

Level Description Indicative requirements

- Up to 5 years relevant experience in one

Performs a variety of research and analytical
or more professional disciplines, or
tasks requiring independent initiative.
equivalent combination of relevant
However, the overall direction of the work is
education and experience.
1 clearly defined and forms a component of a
- Theoretical base in subject area, with
larger project. Work is performed under
ability to translate theory into practice
guidance. Contacts with counterparts
- Thematic/regional knowledge (where
predominantly at the administrative level.
required)

- 5 or more years relevant experience in

one or more professional disciplines, or
equivalent combination of relevant
Performs professional level analysis or
education and experience.
research requiring technical skills and
- Thorough knowledge of functional area,
independent initiative within a well defined
2 combining a broad grasp of relevant
program of work. Works with limited
theory and principles
supervision. Contacts with counterparts
- Ability to participate in multi disciplinary
predominantly at a working level.
teams and to work independently.
- Strong thematic/regional knowledge
(where required)

- 10 or more years relevant experience in

one or more professional disciplines, or
Provides informed technical or policy advice
equivalent combination of relevant
and or advises on complex program. Ability to
education and experience.
coordinate contributions of other specialists
- Strong theoretical base in subject area,
to complete a joint project. Recognised as an
with ability to translate theory into
3 expert in the field with appropriate academic
practice
qualifications and substantial professional
- Leadership with ability to function as
experience. Contacts with counterparts
team leader and ability to coach and
predominantly at strategic/management
mentor more junior staff.
level.
- Thematic/regional expertise (where
required)

- 10 or more years professional experience

or equivalent combination of education
Acts as a senior adviser on major policy work
and experience.
or is responsible for leading complex
- Outstanding theoretical base in subject
projects/programs, usually involving the
area, with ability to conceptualise, design
participation of one or more multidisciplinary
and implement major projects and to
teams. Strong academic background and or
produce major/complex reports or
4 internationally recognised professional status
studies.
in the field. Extensive relevant professional
- Outstanding thematic/regional expertise
experience including at senior advisory or
(where required)
managerial levels. Contacts with counterparts
- Demonstrated professional leadership
predominantly at strategic/management
and ability to lead a team of professionals
level.
and ability to coach and mentor more
junior staff.

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Annex 4 – Short-term adviser remuneration tables

Discipline Group A
AUD - daily remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 308 Up to 2 347 >2 to 5 385 462

for advisers with an

2 408 Up to 5 459 >5 to 10 510 outstanding 612
performance history

3 540 Up to 10 607 >10 to 15 674 or for scarce skills 809

4 618 Up to 15 696 >15 773 928

Discipline Group B
AUD - daily remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 302 Up to 2 340 >2 to 5 378 454

for advisers with an

2 436 Up to 5 490 >5 to 10 545 outstanding 654
performance history

3 565 Up to 10 636 >10 to 15 707 or for scarce skills 848

4 649 Up to 15 730 >15 811 973

Discipline Group C
AUD - daily remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 318 Up to 2 358 >2 to 5 398 478

for advisers with an

2 433 Up to 5 487 >5 to 10 541 outstanding 649
performance history

3 593 Up to 10 667 >10 to 15 742 or for scarce skills 890

4 682 Up to 15 768 >15 853 1024

Discipline Group D
AUD - daily remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 354 Up to 2 399 >2 to 5 443 531

for advisers with an

2 491 Up to 5 553 >5 to 10 614 outstanding 737
performance history

3 679 Up to 10 764 >10 to 15 849 or for scarce skills 1018

4 774 Up to 15 871 >15 968 1161

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Annex 5 – Long-term adviser remuneration tables

Discipline Group A
AUD - monthly remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 5,658 Up to 2 6,366 >2 to 5 7,073 8,488

for advisers with an

2 7,482 Up to 5 8,418 >5 to 10 9,353 outstanding 11,224
performance history

3 9,918 Up to 10 11,158 >10 to 15 12,398 or for scarce skills 14,878

4 11,322 Up to 15 12,737 >15 14,152 16,983

Discipline Group B
AUD - monthly remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 5,590 Up to 2 6,289 >2 to 5 6,988 8,386

for advisers with an

2 8,061 Up to 5 9,068 >5 to 10 10,076 outstanding 12,091
performance history

3 10,412 Up to 10 11,714 >10 to 15 13,015 or for scarce skills 15,619

4 11,907 Up to 15 13,395 >15 14,883 17,860

Discipline Group C
AUD - monthly remuneration rates
Years of relevant Years of relevant
Job level Entry rate Maximum Premium rates Maximum
experience experience

1 5,887 Up to 2 6,623 >2 to 5 7,358 8,830

for advisers with an

2 8,026 Up to 5 9,029 >5 to 10 10,032 outstanding 12,039
performance history

3 10,946 Up to 10 12,314 >10 to 15 13,683 or for scarce skills 16,419

4 12,545 Up to 15 14,114 >15 15,682 18,818

Discipline Group D
AUD - monthly remuneration rates
Years of relevant Years of relevant
Job level Entry rate MRP Premium rates Maximum
experience experience

1 6,601 Up to 2 7,426 >2 to 5 8,251 9,901

for advisers with an

2 9,156 Up to 5 10,301 >5 to 10 11,445 outstanding 13,734
performance history

3 12,620 Up to 10 14,197 >10 to 15 15,774 or for scarce skills 18,929

4 14,335 Up to 15 16,127 >15 17,918 21,502

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