26 September 2023

Memorandum formalises PS wage limits

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The Department of Premier and Cabinet (DPC) has published a memorandum setting out the new Public Sector Wages Policy implementing the Government’s decision to provide annual PS wage increases of up to 1.5 per cent.

The memorandum M2021-09 NSW Public Sector Wages Policy 2021 also sets out new governance arrangements for overseeing the Policy.

It says the Policy applies to the Government sector, including Public Service Agencies, Departments, Executive Agencies, and independent statutory bodies, including employees and staff identified in Section Five of the Government Sector Employment Act 2013.

“Government has determined that future remuneration increases will be broadly aligned with the average forecasts for underlying inflation,” the memorandum says.

“Public sector employees may be awarded increases in remuneration or other conditions of employment that do not increase costs by more than 1.5 per cent per annum.”

It says proposals that don’t increase employee related costs by more than 1.5 per cent per annum may be approved by the Senior Officials Wages Advisory Committee which it convenes.

“Increases in remuneration or other conditions of employment that increase employee related costs by more than 1.5 per cent per annum can be awarded, but only if sufficient employee related cost savings have been achieved to fully offset the increased employee related costs,” the memorandum says.

The Department of Premier and Cabinet strongly encourages State Owned Corporations, including their subsidiaries, to adopt the terms of the policy.

The seven-page NSW Public Sector Wages Policy 2021 can be accessed at this PS News link.

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