Remuneration Policy - NWU

1 Remuneration Policy Reference number 3 Accountable executive manager Executive Director: Human Capital Development Policy owner Director: Human Resources (Operations) Responsible division Human Resources (Operations) Status Approved Approved by Council Date of approval 25 September 2005 Amendments Date of amendments Review date 2010 Web address of this Policy Address on the Policy data base HSCAVDM r:\2. management\ Policy development and review\ review\ Policy documents\ Remuneration Policy 1 Remuneration Policy 1 Preamble As a pre-eminent university in Africa, driven by the pursuit of knowledge and innovation, with a unique institutional culture based upon the values the University espouses, the North-West University has adopted this Remuneration Policy on 23 September 2005.

2 2 Objectives of the Policy To create a framework for Remuneration management that will enable the University to attract and retain staff of high quality and potential. To ensure that the University as employer complies with legal prescriptions ( the Basic Conditions of Employment act), as well as the contractual obligations contained in the letters of appointment and conditions of service. To ensure the alignment of Remuneration levels following on the merger/incorporation. 3 Scope of application All permanent and fixed-term staff of the North-West University. 4 Guiding principles The Remuneration Policy and practices must support the vision, mission, strategies and objectives of the University.

3 The University follows a total package approach in the determination and management of Remuneration , as set out in the Remuneration structure. The total Remuneration package of every individual is determined according to this Policy , irrespective of what the source of financing of the package or part thereof may be. Remuneration is one of the factors that influence employee behaviour and must therefore be managed in such a way that it contributes to a motivating work climate. Remuneration management must make provision for fair differentiation in the Remuneration of individuals, based on acceptable determinants of Remuneration . Remuneration management is a core responsibility of all line managers, and for this purpose line managers will receive the necessary training.

4 The total Remuneration package of staff members will be monitored on an annual basis, as scheduled by Institutional Management and based on the determinants of Remuneration . For this purpose the University will make use of reputable Remuneration surveys to determine and adjust general Remuneration scales, specific scales for identified work environments or professions, and the Remuneration structure. 5 The determinants of Remuneration The following drivers of Remuneration , as generally accepted in terms of best practice, will be used in the determination and adjustment of Remuneration : Job grade Performance output Scarcity Strategic priority Internal parity Affordability Remuneration Policy 2 6 Remuneration structure Remuneration is based on a total package approach.

5 A total package can include the following: Cash salary Pensionable salary Service bonus Pensionable allowances Non-pensionable allowances Employer contributions to benefit schemes Retirement provision Group life insurance Medical aid (Optional) The above constitutes the portion of the total Remuneration package which is guaranteed in terms of the employment contract. Additional Remuneration (Variable, conditional and not guaranteed) Performance bonus Professional allowances Project allowances Awards 7 Governance, management roles and accountabilities Council is responsible for the existence and monitoring of implementation of a Remuneration Policy based on the needs of the University and on best practice.

6 Institutional Management is responsible for the implementation of this Policy in terms of the necessary processes, systems and procedures. Line managers (directors/heads of departments and upwards) are responsible for the determination, revision and adjustment of Remuneration of staff members, provided that any Remuneration decision must be clarified with the Human Resources department and approved by the immediate superior line manager. Human Resources department is responsible for: The design and maintenance of the job grade- and Remuneration structure, based on this Policy , The necessary survey information, and The provision of management information. Original details: r:\2. management\ Policy development and review\ review\ Policy documents\ 2010-01-26