The NSW Public Sector Wages Policy 2021 implements the Government’s decision to provide annual wage increases of up to 1.5 per cent and prescribes new governance arrangements for oversight of the policy.

Proposals to increase remuneration or other conditions of employment that do not increase employee related costs by more than 1.5 per cent per annum may be approved by the Senior Officials Wages Advisory Committee convened by the Department of Premier and Cabinet.

Increases in remuneration or other conditions of employment that increase employee related costs by more than 1.5 per cent per annum can only be considered where sufficient employee related cost savings have been achieved to fully offset the increased employee related costs and requires the approval of the Cabinet Standing Committee on Expenditure Review.

Agencies should refer to the detail of the policy whenever considering changes to the wages or conditions of employment of public sector employees, whether they are to be included in formal industrial instruments, and should contact DPC when contemplating such changes.