Description
The NSW Government’s Fair Pay and Bargaining Policy 2024-25 (“the Fair Pay and Bargaining Policy”) applies to the Government sector as defined in the Government Sector Employment Act 2013, including Public Service agencies, the Teaching Service, the NSW Police Force, the NSW Health Service, the Transport Service of NSW, independent statutory bodies, and persons identified in section 5 (1) (b) - (f) of the Government Sector Employment Act 2013.
State Owned Corporations, including their subsidiaries, are encouraged to adopt the terms of the Fair Pay Policy and include a commitment to do so within their Statement of Corporate Intent.
The Fair Pay Policy applies to any negotiations, variations, and claims or offers by agencies that impact on remuneration or other conditions of employment, whether or not they are formalised in an industrial instrument.
Detailed Outline
The NSW Government’s Fair Pay and Bargaining Policy 2024-25 (“the Fair Pay and Bargaining Policy”) reflects the Government’s announcement on 20 May 2024, setting out the baseline remuneration adjustments for the public sector over the next three years.
The policy provides for increases to salary and salary-related allowances as follows:
FY2024-25: 3 per cent increase to salary and salary-related allowances, plus a 0.5 per cent increase to superannuation.
FY2025-26: 3 per cent increase to salary and salary-related allowances, plus a 0.5 per cent increase to superannuation.
FY2026-27: 3 per cent increase to salary and salary-related allowances.
An additional 0.5 per cent increase to salary and salary related allowances is available in FY2024-25 for workers who have not received a structural adjustment in the past 12 months, provided an agreement is reached in a timely manner.
A one-off, taxable $1,000 cost of living adjustment payment, plus superannuation, may also be provided if the 12-month annual average Sydney Consumer Price Index (CPI) rate exceeds 4.5% in the year to the March quarter of 2025, 2026 and 2027.
The policy also includes the approved Model No Extra Claims (NEC) Clause.
Additional updates to the Fair Pay and Bargaining Policy include:
Further guidance on productivity enhancements.
Clarification of the Senior Officials Wages Advisory Committee (SOWAC) and Cabinet Committee on Expenditure Review (ERC) process.
Inclusion of bargaining parameters and the NEC clause as annexures, ensuring the policy remains a stand-alone document, separate from baseline parameters that may be updated.
Restructured content for improved clarity, assisting agencies in understanding the required process.
Agencies should ensure that periodic assessments are undertaken to ensure compliance with the policy at each stage of the process.
Agencies should refer to the detail of the policy whenever bargaining and when considering changes to remuneration or conditions of employment of public sector employees, whether or not they are to be included in formal industrial instruments. Agencies should contact Premier’s Department Industrial Relations for further advice when contemplating such changes ([email protected]).
Chris Minns MP
Premier
Overview
Who needs to know and/or comply with this?
- Departments
- Executive agencies related to Departments
- Separate agencies
- State Owned Corporations
- Statutory Authorities/Bodies
- Subsidiaries of the NSW Government established under the Corporations Act
Compliance
- Mandatory
AR Details
- Date Issued
- Mar 12, 2025
- Review Date
- Dec 1, 2026
- Replaces
- Replaced By
-
Contacts
- Contact
- Contact us
- Phone
- 02 9228 5555
- Publishing Entity
- Premier's Department
- Issuing Entity
- Premier's Department