The Australian government has proposed a minimum 9 percent pay increase over three years for approximately 200,000 federal public servants, a move designed to offer wage rises above the anticipated inflation rate but below unions' demand for a 15 percent raise. The government's initial offer includes annual increases of 3.2 percent in 2027, 3 percent in 2028, and 2.8 percent in 2029.
Alison Stott, the chief negotiator for the Australian Public Service (APS), noted that the total pay rises would exceed 9 percent for about 83 percent of eligible employees, factoring in additional increments for lower-paid workers and salary step progressions. She emphasized that the proposed increases surpass the projected 2.5 percent inflation rate outlined in May’s federal budget and highlighted the offer’s aim to promote pay consistency across agencies and more uniform career advancement within the APS.
“The proposal delivers guaranteed pay rises while also increasing consistency in pay between agencies and creating more consistent salary advancement across the APS,” Stott said, adding that the preliminary offer leaves room for potential increases as negotiations continue. She also referenced the previous round of bargaining, when union members accepted a government pay offer of 11.2 percent over three years plus a 0.92 percent sign-on bonus.
The pay proposal emerged shortly after the government announced a $630 million investment to increase wages for 460,000 health, disability, and community services workers. This follows a June commitment of $3.6 billion aimed at funding wage rises for childcare workers.
However, the Community and Public Sector Union (CPSU) criticized the proposed pay offer as insufficient. CPSU national secretary Rebecca Fawcett said the union’s members had been clear in their call for pay that keeps pace with the cost of living and adequately reflects the essential nature of their work. “The APS-wide pay offer that has been tabled today falls short of what our members asked for, and what public sector workers deserve,” Fawcett said, adding that union members will now determine whether the offer is acceptable as bargaining continues.
Employment and Workplace Relations Minister Amanda Rishworth responded to concerns about the inflationary impact of the wage increases, asserting there is no evidence that such increases are driving inflation. She defended the government’s approach as responsible, highlighting that the Fair Work Commission had recognized the need to fairly compensate workers providing essential support services to vulnerable populations. “We will fund and top up so that these people can get paid,” she stated.
Recent data from the APS Employee Census showed a decline in perceptions of fair pay, with 61 percent of public servants believing they receive adequate remuneration compared with 66 percent the previous year. Fawcett linked these findings to the ongoing pressures from staffing changes and redundancies, reinforcing the union's position that a more substantial wage increase is necessary to mitigate rising living costs and workplace demands.