Unit of competency Outline

Date retreived
22/07/2026 6:46 PM AWST

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Manage remuneration and employee benefits

Manage remuneration and employee benefits

Unit of competency
National Code
BSBHRM505A
State Code
D0738
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/09/2008
View on TGA
State Implementation and Classification
Approved Date
09/10/2014
Field of Education
080303 - Human Resource Management
Original Release Date
09/10/2014
Nominal Hours
60
Description
This unit describes the performance outcomes, skills and knowledge required to implement an organisations remuneration and benefit plans. It incorporates all functions associated with remuneration including packaging, salary benchmarking, market rates reviews, bonuses and the legislative aspects of remuneration and employee benefits.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.This unit describes the performance outcomes, skills and knowledge required to implement an organisations remuneration and benefit plans. It incorporates all functions associated with remuneration including packaging, salary benchmarking, market rates reviews, bonuses and the legislative aspects of remuneration and employee benefits.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1 Develop organisation's remuneration strategy
  • 1.1 Analyse strategic and operational plans to determine the scope of remuneration and benefits plans
  • 1.2 Undertake research on current practice, recent developments and legislative parameters for the remuneration strategy
  • 1.3 Develop options for consideration by relevant managers
  • 1.4 Present options showing the link to organisational strategic objectives
  • 1.5 Ensure remuneration policies and incentive plans are agreed and documented
2 Implement remuneration strategy
  • 2.1 Research occupational groups to determine those which are industrial agreement based
  • 2.2 Access/undertake market rates surveys regularly to ensure the organisation's required level of competitiveness for particular occupational groups is maintained
  • 2.3 Align remuneration and benefits plans with performance management system
  • 2.4 Ensure that employees receive at least their minimum entitlements in accordance with organisational policies and legal requirements
  • 2.5 Ensure salary packages comply with organisational policies and legal requirements including fringe benefits tax (FBT) and superannuation
  • 2.6 Ensure incentive arrangements, if included, comply with the organisation's remuneration strategy
3 Review and update remuneration strategy
  • 3.1 Consult managers and employees about the effectiveness of the remuneration strategy
  • 3.2 Amend strategy and plans as necessary to meet organisational policies and legal requirements
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Remuneration and benefits may include:
allowances
annual leave
bonuses/incentives
competency-based progression
employee share plans
ex gratia payments
expense reimbursement
family/carer's leave
fringe benefits
leave without pay
long service leave
motor vehicle
salaries and wages
share options
sick leave
special leave
study leave
superannuation
Market rates surveys may include:
data from remuneration specialists
general community surveys
industry salary benchmarking
surveys conducted by the organisation
Salary packages refers to:
payment arrangement where the total remuneration and benefits payable to an employee are calculated as total cost of employment (i.e. salary, allowances, motor vehicle, superannuation and fringe benefits)
it does not include payroll tax or workers compensation insurance
Incentive arrangements may include:
commission
bonuses
share plans
share options
gain sharing
profit sharing
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
compliance with all of the legal aspects of managing remuneration and benefits
demonstrated capacity to research and apply remuneration strategies to different occupational groups and circumstances
application of awards and agreements to structure remuneration processes
knowledge of the requirements of the Australian Tax Office in relation to income tax, superannuation reporting, FBT and bonus payments.
Context of and specific resources for assessment
Assessment must ensure:
access to appropriate documentation and resources normally used in the workplace.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
assessment of written reports on remuneration models and approaches
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
review of research undertaken on current practice, recent developments and legislative parameters for the remuneration strategy
review of remuneration options developed for consideration by relevant managers
oral or written questioning to assess knowledge of legislation and the taxation system.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
other units from the Diploma of Human Resources Management.
Replaces
State Code National Code Title Type
C3571 BSBHR505A Manage remuneration and employee benefits Unit of competency
Replaced By
State Code National Code Title Type
D4863 BSBHRM505B Manage remuneration and employee benefits Unit of competency