NSW’s public sector workers will receive a significant wage increase of up to 2.5 per cent as a financial ‘thank you’ in response to the state’s economic rebound from the pandemic.
The wage increase will come into effect for all public sector workers who due to being renewed from 1 July 2021. This will include hospital workers, paramedics and police who helped fight the pandemic.
Premier Gladys Berejiklian said the decision to boost pay came from the renewed confidence in the NSW economy after the country experienced its first recession since post-war.
“The pandemic has meant making sacrifices and difficult decisions. This included wage restraint during the worst of the crisis,” Premier Berejiklian said.
“We put all of our financial strength into protecting people, providing economic stimulus and boosting job-creating programs. The economy is back growing and we are now able to give a wage increase to government workers and their families.”
This increase in the public-sector wage is significantly above current private-sector wage growth and is forecasted to cost approximately $2.7 billion in the next four years.
Treasurer Dominic Perrottet said the impact of the pandemic can still be felt even though the NSW economy had rebounded.
“We have committed more than $29 billion in support and stimulus measures to support the economy during the pandemic,” Treasurer Perrottet said.
“Last year’s reduction in pay rises was a tough decision, but everyone remembers the very confronting scenes from last year of people lined up outside Centrelink, by making that decision we were able to protect and boost jobs when needed to.”
The NSW Industrial Relations Commission (IRC) awarded most public servants a wage increase of 0.3 per cent in the midst of the pandemic. NSW’s unemployment rate now sits at 5.0 per cent after reaching over 7 per cent last year.
The state has regained more than the 270,000 jobs that had been lost during the pandemic with economic recovery currently underway.
“We know there is still a lot more to do and we will continue to support people and businesses with a strong focus on productivity growth and reform,” Treasurer Perrottet said.
“We weathered the storm and after a pandemic induced pause we can return to a fiscally responsible policy.”