Public sector workers to receive 11.4% pay increase over next 3 years

Public Service Association of NSW members have agreed to a pay rise offered by the state government, including cost-of-living allowances.

An agreement was reached by members of the union Public Service Association (PSA) of NSW and the state government after the members voted yes to the pay rise proposed by the state government. The agreement settles the union’s claim for the 2024–25 financial year and the following two years.

According to the PSA’s survey of the government’s offer, 78 per cent agreed with the pay rise. Workers in the public sector across the state will now receive a compound increase of 11.4 per cent over the following three years.

The offer, which will be backdated to the first full pay period on or after 1 July 2024, is as follows:

• Four per cent 2024–2025 increase in salaries plus 0.5 per cent superannuation.
• Three per cent 2025–2026 increase in salaries plus 0.5 per cent superannuation.
• Three per cent 2026–2027 increase in salaries.

According to the PSA, the offer includes safeguards against inflation. If the Sydney consumer price index exceeds 3.5 per cent in the second or third year of the deal, it will trigger negotiations for a one-off, non-cumulative, cost-of-living allowance (COLA).

If it continues to rise and exceeds 4 per cent, members will receive a $1,000 taxable, one-off, non-cumulative cost-of-living adjustment payment, plus superannuation to combat the increases.

“This was a long and difficult negotiation, but I’m pleased to have achieved a position that has been endorsed by our members,” said PSA general secretary Stewart Little.

“Public sector workers are the backbone of the New South Wales economy. Our members are what makes this state tick, and yet, for a decade under the previous government, their contribution was grossly undervalued.

“Our members look after at-risk children, they protect our police officers and our natural environment, they provide security at our courts, and hundreds of other crucial services. They deserve every cent of this pay rise.”

The industry-specific deals throughout this negotiation were for child protection, NSW Fisheries, NSW Police: special constables and grooms, public sector psychologists, and sheriff’s officers.

In terms of the cost-of-living and inflation parameters, Little believes it will give their members the peace of mind needed, knowing they have somewhat of an insurance policy if the situation is to worsen these next three years.

“A three-year deal, with the government’s provisions for inflation, gives our members peace of mind,” Little said.

“PSA members are rightly proud of the contributions they make to our state. This deal is, at least, a significant advance towards proper recognition of their value.”