No rise for staff on $100,000

Public sector workers earning more than $60,000 can only expect pay increases in “exceptional circumstances” while those on more than $100,000 won’t get a cent more over the next three years, the Government says.

Last year the public sector was asked to have nil or minimal pay increases until next month.

The Government says the extended pay freeze is to reduce debt from the Covid-19 response, but the Public Service Association (PSA) says it punishes workers “after a year of sacrifice, hard work and success protecting New Zealanders from Covid19”.

The Government’s Workforce Policy Statement, issued yesterday, sets out its expectations for pay and employment relations in the public sector. New Zealand had an “exceptionally successful health and economic response to Covid-19”, Finance Minister Grant Robertson said, supported by the Government taking on debt for polices like the wage subsidy.

“Just as businesses are making decisions as they plan for the recovery, our responsible economic approach means the Government is faced with choices about where new spending is targeted,” he said.

Public Service Minister Chris Hipkins said increases would be targeted to lower-paid public servants, largely those earning below $60,000, who account for about 25 per cent of the public sector.

The PSA, which represents almost 80,000 workers, said they felt “betrayed”.