NSW politicians and public service executives hit with wage freeze to fund payrise for frontline workers
Promised pay rises for New South Wales frontline workers will be funded by a two-year freeze on the wages of state politicians and public service senior executives.
Legislation will be introduced to state parliament on Tuesday freezing the salaries of MPs and executives from July and redirecting the millions of dollars in savings to nurses, paramedics, teachers and other frontline workers.
The move was signed off by cabinet on Monday, two months after Labor was swept to power on the promise of lifting the 3% cap on public sector wages.
The premier, Chris Minns, has been under increasing pressure to deliver on a key election commitment, with health unions threatening to escalate industrial action.
“We said we would freeze politicians’ pay and that’s what our bill does,” Minns said in a statement.
“We have inherited a challenging budget, but budgets are about priorities.
“Our priority is rebuilding our essential services and investing in frontline workers.”
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Treasury estimates the move will save about $260m over four years – funds that will be invested into essential services, such as schools and hospitals.
Under the former government, the annual wages bill for senior executives across NSW government agencies, departments and state-owned corporations had ballooned to about $1bn a year, the government said in a statement.
The Minns Labor government promised to end the “pay freeze on the frontline staff who deliver essential services to people across our state’’, while achieving “responsible budget savings”.
Senior executives covered by the freeze include departmental secretaries, agency chief executive officers, executive office holders, commissioners and judicial officers.
The senior executive and politician pay freeze was supported by both major parties ahead of the March election.
One bill will effectively freeze the basic salary of all parliamentarians for two years, while a second bill will implement the pay freeze for senior executives as well as judicial and non-judicial office holders.
The special minister of state, John Graham, said the Coalition government froze the pay packets of frontline workers, while senior executive salaries hit $1bn.
“This is about reinvesting in the public service, reinvesting in essential workers,’’ he said. “What we’re doing is capping the top end of the service to reinvest in frontline workers.”