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Looking to extend your annual leave while maintaining job security? The Victorian Public Service’s Purchased Leave arrangement might be exactly what you need. Let’s break down this valuable employee benefit and how it works.

What is Purchased Leave?

Purchased Leave is an innovative arrangement that allows Victorian Public Service employees to buy additional weeks of leave by reducing their annual salary. Think of it as spreading your salary across more weeks of leave – you get extra time off while maintaining a steady income throughout the year.

 

How Does Purchased Leave Work?

The arrangement runs for a 52-week period (called the Purchasing Year), during which your salary is adjusted to account for the extra leave you’re purchasing. You can choose to either:
– Receive all your purchased leave upfront to use during the year
– Accrue it progressively throughout the year

 

Key Benefits to Purchased Leave

 

  • 1. Flexible Leave Management
    Purchase additional weeks of leave while maintaining job security
    Perfect for planning extended breaks or managing work-life balance
    Can be combined with existing leave entitlements
  • 2. Financial Planning
    The cost of extra leave is spread across the entire year.
    Your regular paycheck is adjusted to accommodate the purchased leave.
    It doesn’t affect your full-time employment status.
  • 3. Impact on Other Benefits
    Maintains your accrual of annual leave, personal leave, and long service leave
    May affect salary-based entitlements like superannuation and overtime payments
    No impact on health insurance premiums or pre-tax salary sacrifice arrangements

 

Important Considerations

 

Before jumping into a Purchased Leave arrangement, consider these factors:

  • The arrangement must be renewed annually – it doesn’t automatically rollover
  • You can’t apply if you have excessive annual leave accrual
  • All purchased leave should be used within the purchasing year
  • The arrangement may have taxation and superannuation implications

 

Making an Informed Decision

Before entering into a Purchased Leave arrangement, consider:
– Consulting with your HR department about specific requirements
– Seeking independent financial advice about potential impacts on your benefits
– Exploring alternatives like annual leave at half pay or flexible working arrangements

Discussing purchased leave

Ready to Apply for Purchased Leave?

If Purchased Leave sounds right for you:

1. Check your leave balances to ensure you’re eligible
2. Submit a written request to your employer
3. Discuss the timing and arrangement details with your manager
4. Plan how you’ll use your additional leave throughout the year

Remember, this arrangement is designed to help you achieve a better work-life balance while maintaining financial stability. Consider your options and seek advice to make the best decision for your situation.

Looking for more information? Contact us to discuss your specific circumstances and how to get started with Purchased Leave.

Related policies or documents

VPS Enterprise Agreement Common Policies • Annual Leave • Flexible Working Arrangements • Other Leave • Review of Action All policies in the VPS Enterprise Agreement common policies collection can be found at

https://www.vic.gov.au/common-policies-victorian-public-service-enterprise-agreement

 

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T: P: ‭+61 490 459 577‬
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