Total package is a method to calculate and pay a total package amount per annum, by entering a total package pay policy and have Definitiv calculate the eventual cash salary amount by deducting the “included in total package” pay items.

For Definitiv to undertake the calculation it must have the following configuration.

The amount entered must be the total of all benefits (pay items) that are to be included in the Total Package.

Any Pay Items used in the calculation of your Total Package need to be marked as “Include in Total Package”.

You may also need to create 2 additional pay items in the Superannuation Pay Item Tab.

In the Add Pay Item clauses you will need to add the new pay items created and ensure the rate is specified as Total. This would be applicable for all pay items that are paid through the award to be calculated within the total package remuneration value.

The system will then calculate the proportion of the Total Package amount for the pay period.

It will then deduct any pay items marked as Include in Total Package to work out the remainder being Gross Salary.

Example: An employee is on a Total Package of $500,000, with the only other pay item included in the total package being Superannuation (no allowances etc.)

If you apply the MSCB cap and the employee is capped the residual payment is calculated back to the employee in the form of gross salary calculated.

You can combine Non-Total Package calculations with Total Package calculations however they will need separate pay items and award policies to ensure there are no calculation errors.

If you pay additional pay items, such as bonuses, that are inclusive of super, that will also contribute to the Total Package calculation if simply marked as Superable.

Also, remember you may need to update the following to include the new pay items created: