Voluntary Separation Package


A Voluntary Separation Package (VSP) may be offered to employees who are or become excess to requirements as a consequence of savings measures or organisational changes and who are not assigned to other ongoing public sector employment

Getting started

An offer of a VSP can only be made to an employee once an agency has declared the employee is excess to requirements because their assigned duties/role or position has or is to be abolished.

The VSP is calculated according to the guidelines set by the Dept Treasury and Finance within Determination 7: Changes to Workforce Composition and management of Excess Employees - Redeployment, Retraining and Redundancy.

This determination sets out the circumstances and guidelines agencies for employees covered by:

  • SA Modern Public Sector Enterprise Agreement:Salaried 2017
  • SA Public Sector Wages Parity Enterprise Agreement:Weekly Paid 2017



How to

Prepare and process VSP's

  1. There is generally an 12 week lead time for a VSP request to be calculated, accepted, checked and processed for payment.

  2. Note that agencies are required to give employees 3 weeks to consider a formal offer of a VSP, unless this period is waived in writing by the employee. If leave is taken during this period or other changes occur, a recalculation will be required which will extend processing timeframes.

  3. Your agency HR is responsible for requesting payment calculation details from Payroll Services prior to presenting you an offer and then they will coordinate the process on your behalf should you choose to accept the offer.

  4. To learn more, speak to your agency HR about your circumstances and seek independent financial / tax advice.

Tips for agencies requesting VSPs

  1.  Ensure paperwork submitted to Payroll Services is complete, signed and checked prior to submission to avoid any processing delays.

  2.  Expect VSP calculations to be returned within 15 working days from receipt of all correct/completed paperwork.

  3.  Contact Payroll Services to negotiate appropriate timeframes for bulk requests (five or more VSPs).

Refer: Service Levels