EB11 - what you need to know about the Cost of Living Adjustment payments
In addition to your wage increases of 4%, 4% and 3% over the life of the agreement, Queensland Health (QH) and Department of Education (DoE) nurses and midwives will also receive annual Cost of Living Adjustment (COLA) payments if inflation is higher than the wage increase at the end of March of each year of the agreement.
These COLA payments will be a lump sum equal to the difference between the inflation rate and the wage increase for that year, up to a maximum of 3% per year. These payments do not form part of your ongoing wage rate.
Note: these top up payments will be paid by July each year for the life of the agreement (up to and including 2025).
When will the COLA be paid?
It will be paid by 30 June in each year of the agreement.
How is the COLA payment calculated?
The COLA payment will be paid as a percentage of the base rate of pay applicable before the increase in that year. For example, the first COLA payment will be calculated on the base rate of pay you are on before the 3% pay increase that applies from 1 April 2024.
This does include higher duties allowance and casual loading, but does not include shift or weekend penalties, overtime or any other allowances.
How is the percentage of the COLA decided?
The COLA is based on the Consumer Price Index (CPI) rate for Brisbane for the previous year up to 31 March in the year the COLA is to be paid, as published by the Australian Bureau of Statistics.
Who will be eligible to receive the COLA?
You will be eligible to receive the COLA if you are employed on the calculation date of 31 March in 2023, 2024 and 2025.
You will not receive a pro rata payment if you leave before this date. If you leave employment prior to 31 March, you won’t receive it and if you start working for QH or DoE on 1 April you won’t receive it.
If I started working for QH or DoE part way through the year, how much COLA will I receive?
If you didn’t work for the full year, you will receive the COLA pro rata on the amount of time you did work. For example, if you started work on 1 September 2022 you would receive 50% of the COLA amount.
I am a part-time employee – how much COLA will I receive?
You will receive the COLA pro rata based on the hours you actually worked.
I am a casual employee – will I receive the COLA?
Casual employees will receive the COLA if you have performed work in QH or DoE within 12 weeks prior to 31 March each year.
Will my casual loading be included in the base rate of pay?
Yes, casual loading is included in base rate so the COLA calculation will take that into account.
What are the arrangements for employees who work in two positions under the same Agreement?
The COLA payment will be determined with reference to the employee’s base wages earned under the relevant Agreement during the Agreement year. Where the employee has worked in two different positions under the relevant Agreement during the course of the year, their COLA payment will be calculated with reference to their base wages in each relevant position under that particular Agreement.
Are higher duties considered part of base wages?
Higher duties form part of base wages for the purposes of calculating the COLA payment. This will include all circumstances where an employee has been on higher duties under that Agreement during the course of the Agreement year.
If I am on unpaid leave on the calculation date, will I receive the COLA?
If an employee is on any type of approved leave (including approved leave without pay), they will automatically receive the payment, as long as the employee remains employed under the Agreement on the calculation date.
How would COLA be paid to an employee who is taking paid and unpaid parental leave?
The COLA payment is calculated with reference to an employee’s base wages actually payable under the Agreement, taking into consideration periods of paid and unpaid leave. Where an employee has been on leave without pay, this will reduce the base wages payable under the relevant Agreement, and by extension the COLA payment.
What about employees receiving workers’ compensation payments (receiving a percentage of normal weekly earnings)?
Employees receiving workers’ compensation payments will be eligible for a COLA payment calculated based on the percentage of their normal weekly earnings payable under legislation.
What about employees receiving income protection payments?
An employee’s base wages reflect the periods they worked or were on paid leave during the Agreement year and the earnings attributable to this work/employment entitlement. Therefore, income protection payments do not form part of base wages for the purposes of calculating the COLA payment.
Back to EB11 summary information