To maintain real wages, the NSW Government will fund a 2.5 per cent annual increase in employee related expenses. Agencies must fund any increases above 2.5 per cent per annum to wages, or other employee related expenses such as allowances, superannuation etc, through employee related cost saving measures.
Employee related costs are the largest component of Government expenditure, accounting for almost half of Government expenses. Each 1 per cent increase in employee related costs permanently increases Government expenses by around $224 million per annum.
Over the last 12 years, public sector wages in NSW have increased at rates well above inflation. The Government is committed to a policy of fair working conditions and allowing reasonable wage increases that do not increase costs to the community or reduce services.
