Australia Employment News

APS proposes 10.5 per cent wage increase for public sector employees

Eliza Sayon May 17, 2023

2 min read

The Australian Public Service Commission has recently proposed a pay increase of 10.5 per cent over a span of three years in its ongoing negotiations with public sector unions regarding the wages of public sector employees.

On Tuesday, the Australian Public Service Commission unveiled their proposal, comprising a four per cent increase in the first year, followed by 3.5 per cent in the second year, and 3 per cent in the third year.

“This is a fair and affordable pay offer which provides a pay rise to APS employees while balancing the government’s broader fiscal responsibilities on behalf of all Australians,” APS Deputy Commissioner Peter Riordan said.

“The Commonwealth considered a range of factors when determining its pay offer, including recent wage outcomes across Australia, numerous economic indicators, the current labour market (and) budgetary considerations.”

The wage offer coincides with the current demands from public sector unions urging the NSW and Victorian governments to abandon the wage caps imposed during the COVID-19 period.

These unions are advocating for wage increases that align with Queensland’s remarkable seven percent annual wage rise, which sets a benchmark within the sector.

The APSC presented the proposed increase to its extensive civil workforce of over 160,000 employees, which equated only half to the CPSU’s request for a 20 per cent wage increase over three years.

CPSU National Secretary Melissa Donnelly states what while their proposed wage increase was ambitious, it has to be given the neglect in the last few years.

“While I will not pre-empt feedback from CPSU members on the pay offer tabled by the APSC, I will say that our pay claim is ambitious because it has to be,” she said.

“To rebuild the APS, service-wide bargaining must deliver improvements to pay and conditions that are not ignorant to the consequences of the last decade.”

Nonetheless, the CPSU commends the current federal government for engaging in genuine negotiations regarding public sector workplace wages and states that its members are now voting on whether the pay offer is good enough.

“The APSC has tabled a pay offer of 10.5% over three years, which we will now take directly to our tens of thousands of CPSU members for them to vote and provide feedback on,” Donnelly said.

“That feedback and the outcome of the voting process will inform next steps for the union and our bargaining team.”

With the voting ballot to close on 30 May, Riordan and Minister for Finance Katy Gallagher aim to conclude the pay negotiations by July so as to begin the implementation of adjustments to individual agency awards.

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.