MPs four times better off than teachers, nurses under new public service wage cap

The public servants’ pay cap will rise to 3 per cent and frontline health workers will also get a one-off $3000 thank you payment, with pollies to benefit too. Take our poll on whether it’s enough.

Premier Dominic Perrottet said he could not extend a one-off $3000 thank you payment to police officers at the coalface of the pandemic because of “competing budget interests”.

Mr Perrottet has been slammed by senior police and rank-and-file members for only giving the cash handout to healthcare workers despite police facing vilification from the public for carrying out health orders and running hotel quarantine.

“There are always competing budget interests. It’s always a difficult process,” he said.

“(Cops) they’ve just signed up to their agreement and what we said yesterday … (is) that they will immediately get the three per cent and the 3.5 per cent. I know all our public servants, police, teachers, everyone has done an amazing (job).

“But I think we can all agree that our health workers have been the heroes of the pandemic. They’ve done an amazing job on the frontline.”

Mr Perrottet also responded to recommendations by the Parliamentary Remuneration Tribunal to give MPs a two per cent rise.

Dr Alex Mackey, head of ED at Liverpool Hospital, is one of many healthcare workers who will get a one-off $3000 thank you payment. Picture: Jonathan Ng

“I‘ve seen the recommendation from the parliamentary remuneration tribunal but I’ll make the point that during the pandemic, prior to the pandemic, we froze politicians’ pay,” he said.

Mr Perrottet announced on Monday healthcare workerswould get a $3000 “appreciation” cash boost and the public service wage cap would be increased to 3 per cent this financial year.

In addition, the wage cap would go up to 3.5 per cent the following year, with the additional 0.5 per cent contingent on productivity measures being achieved.

But as The Daily Telegraph revealed, politicians are set to receive an average pay rise of $8000 per year after a decision from the parliamentary remuneration tribunal.

A fourth year teacher, nurse or child protection worker would be about $2000 better off under the new wage cap and the annual PRT determination, released on Friday, will give a two per cent pay increase to MPs’ basic salaries.

Analysis from NSW Labor estimated that the average MP’s salary would increase by $8116 while Premier Dominic Perrottet would get a $11,245 increase.

Premier Dominic Perrottet announced a pay increase for public servants. Picture: Gaye Gerard

MP base salaries increase by 2 per cent but additional allowances, including salaries for additional parliamentary roles, increase by 3.5 per cent.

Mr Perrottet and Treasurer Matt Kean said their $3000 payment was a “thank you” for the people who helped the state through the pandemic.

Overall, the state’s wages policy will cost $1.3bn while the $3000 handouts will cost the taxpayer $435m.

“Our sound economic management allows us to invest in our people through higher wages and more frontline workers,” Mr Perrottet.

Employee relations Minister Damien Tudehope said the government had a “fair and responsible approach”.

“In this wages policy we are putting additional pay increases on the table for workplace reforms that deliver better outcomes for the public – a win for workers and the community,” he said.

The announcement did little to placate union bosses, who are refusing to rule out more strikes after Monday’s wage announcement.

A Public Service Association strike scheduled for Wednesday is still set to go ahead despite the wage cap being increased.

PSA General Secretary Stewart Little said that it would be “very, very unlikely” that a wage increase of three per cent would appease the union to avoid industrial action.

Asked directly if his union would strike again, NSW Teachers Federation President Angelo Gavrielatos said teachers “cannot sit back and watch our students be denied their future”.

Unions NSW Secretary Mark Morey described the announcement as “paltry”.

Treasurer Matt Kean and Premier Dominic Perrottet said the rise and bonus balanced the interests of the state. Picture: David Swift

Mr Morey said the policy was a “political solution” and not a “worker retention solution”.

“The unions are all going to take it back to their memberships and discuss it. My feeling is it’s still a wage cut for workers. It won’t fix the issue of returning skilled staff. It’s positive,” he said.

Mr Morey said the one-off $3000 payment should be extended to all frontline workers and not just the healthcare industry.

Senior police as well rank-and-file officers are bristling at being snubbed in the cash splash after they were vilified by the public in enforcing the government’s public health orders.

“Why do only health workers get the one off $3000? There were thousands of workers who worked through the floors, through bushfires, through the pandemic … it’s a political solution rather than a worker retention solution,” Mr Morey said.