NSW politicians, senior bureaucrats to be hit with two-year pay freeze

NSW politicians and senior executives, who can command salaries of up to $600,000, will have their pay frozen for two years, saving taxpayers an estimated $260m.

All state MPs and senior executives in the NSW government will have their pay frozen for two years, in a move expected to save taxpayers $260m over four years.

The pay freeze, which was approved on Monday, will begin on July 1, 2023, with the extra funds to be invested into essential services such as schools and hospitals instead.

According to current remuneration rates, MPs receive a base salary of $172,576.

Ministers or MPs who hold parliamentary positions are paid more. For example, senior ministers get a further $115,626, while the Speaker, independent MP Greg Piper, is paid an extra $98,368.

Politicians in NSW, who receive a base wage of $172,576, will have their pay frozen for two years. Picture NCA NewsWire/ Gaye Gerard

Senior government bureaucrats, including departmental secretaries, agency chief executive officers, executive office holders, commissioners and judicial officers, will also have their wages frozen.

This comes after the former government was criticised for increasing the salaries of senior executive government bureaucrats by 34 per cent, with some top earners earning more than $600,000.

This was despite the Coalition freezing public sector wages at the beginning of the pandemic., before putting in place a short-lived 1.5 per cent wages cap in November 2020.

NSW Labor announced the pledge in the lead up to the election, which also included a goal to reduce senior public servant positions by 15 per cent by natural attrition. The combined total of the salary freeze and worker cuts were expected to save $500m.

NSW Labor made the promise to freeze wages in the lead up to the state election. Picture: NCA NewsWire/ Nikki Short

NSW Premier Chris Minns said the pay freeze would help the government further invest in essential services and frontline staff.

“We have inherited a challenging budget, but budgets are about priorities,” he said.

“Our priority is rebuilding our essential services and investing in frontline workers.”

Special Minister of State John Graham said it was a “tough decision,” however, NSW senior executives still had some of the highest salaries across the country.

“What we’re doing is capping the top end of the service to reinvest in frontline workers. This senior executive and politician wage cap will help us build capacity in the public sector and stop essential workers leaving the state,” he said.

“The NSW government offers some of the best pay for senior executives across the public sector nationally.

“Even with the wage freeze, NSW will continue to attract the best public service talent.”

Originally published as NSW politicians, senior bureaucrats to be hit with two-year pay freeze