The Victorian Government has updated its wages policy, confirming the framework for future enterprise agreements with the state’s public sector workers. 

Minister for Industrial Relations Tim Pallas has released the details of the new Victorian Public Sector Wages Policy, which increases the wages component from the current 1.5 per cent per annum to a funded annual increase of 3 per cent. 

“Our public sector workers do a great job serving their fellow Victorians and we’re proud to support them,” Minister Pallas said. 

“In addition to wage increases, workers will be able to obtain a sign-on bonus while productivity improvements will bring the potential for further advancement of conditions.” 

Public sector workers can also obtain a lump-sum sign on bonus equal to up to 0.5 per cent of overall agreement costs. Aside from this, they will also be able to seek productivity improvements and efficiencies which can generate additional entitlements. 

In its efforts to sustain the steady economic recovery from the pandemic’s aftermath, the policy aims to maintain an equilibrium between safeguarding the broader interests of Victorians and ensuring equitable outcomes for the esteemed public sector workforce. 

“The policy provides fair outcomes for employees while being responsible as we deal with the types of budget challenges faced by families, businesses and governments across the world,” Minister Pallas said. 

As Victorians are facing the cost of living challenges, the State Budget will also take into account current economic conditions and deliver on election commitments. 

The Victorian Government’s four-step fiscal plan is on track to return the Budget to surplus following unprecedented investments that were required to protect the lives and livelihoods of those within the State. 

The public sector wages policy will apply immediately, including to public sector enterprise agreements that have already reached their nominal expiry dates and where bargaining for replacement agreements is already underway. 

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.

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