NSW public sector workers could be in line for a 4 per cent pay rise but might have to wait until the second half of the year to see a controversial pay cap abolished, senior Minns Government MPs have told union officials as they attempt to head off industrial action planned for the coming weeks.

NSW Premier Chris Minns is facing his first industrial relations test just two months into power, as union officials including the state’s Health Services Union agitate for pay rises of up to 6.5 per cent and for action on a signature election promise to scrap a public sector wage cap.