Direct Crediting of Salary
All employees of the Department paid through the central payroll system are required to use direct crediting (electronic funds transfer) for their salary payments. New staff members are required to provide direct credit details on commencement of employment. To assist schools, a pro-forma is available for schools to use below.
Salary payments are credited to nominated accounts each fortnight. Variations can occur due to public holidays. Refer to Pay Day Calendars under Related Topics below for the current salary payment schedules.
Direct credit arrangements may be made with most banks, building societies and credit unions. It is also possible to distribute a salary payment across multiple accounts or institutions by nominating a net pay percentage or a specific dollar amount to specific accounts.
When commencing direct crediting arrangements or varying existing arrangements, details must be provided in writing to the principal or workplace manager.
Changing Account Details
When changing account details it is advisable for the staff member not to close the old account until the new arrangements appear on the pay advice slip.
Cancellation of a Direct Credit (Recall)
There are some circumstances where the direct crediting of an employee’s salary needs to be cancelled or recalled in order to avoid an overpayment(s), such as where the staff member:
- is receiving WorkCover payments;
- is on extended leave without pay;
- has ceased employment; or
- will be overpaid more than $250 or one day's pay, whichever is the greater.
Note: Cancellations cannot be requested for an excessive tax deduction. A tax refund may be requested in these instances.
Where a cancellation is required, a Cancellation of Direct Credit Request form must be forwarded to Corporate Services Division prior to 10.00 am on the day before pay day.
Rejected Direct Credit
Where a financial institution rejects a staff member's salary to the nominated account/s and returns the payment to the Department, the money will be placed in a holding account until the account details are updated. A direct credit is returned when the employee’s account has been closed or the account or branch details are incorrect. It can take up to four working days for the funds to be returned to the Department by the financial institution.
Where an employee’s salary has not been credited to their nominated account, the Principal/Manager should update HRMS and email Corporate Services at payrollservices@edumail.vic.gov.au to arrange for the payment to be made.
Other Resources
Procedures & Forms
- Administration procedures
- Direct Credit application form – Public Service
- Direct Credit application form – Teaching Service
- HRMS procedures
- Cancellation of Direct Credit Request Form
Legislation
Related Topics