No wage rise for MPs and senior public officers

Parliamentarians, former MPs, secretaries of government departments, judges and other public officer holders will not receive a payrise on July 1.

Finance Minister Mathias Cormann. Picture: AAP

Parliamentarians, former MPs, secretaries of government departments, judges and public ­office holders such as ABC managing ­director David Anderson and Reserve Bank of Australia governor Philip Lowe will not receive a pay rise on July 1.

The Remuneration Tribunal released its decision on Thursday, noting commonwealth public servants had already had their salaries frozen for six months and the economy had been “impacted significantly by restrictions enacted to prevent the spread of COVID-19”.

It is the first time in four years public office holders have not been given a 2 per cent annual pay rise.

The federal government has ­already frozen pay rises for hundreds of top public servants, including politicians, judges and ministerial staff.

“The tribunal notes the Australian economy is facing challenges as a result of COVID-19 and will likely record a second quarter of negative growth once the June quarter results are known. With high levels of unemployment, wage growth is expected to slow,” the tribunal said.

The most recent decision to defer wage increases of commonwealth public servants is significant. At its meeting on 18th March, the tribunal’s preliminary conclusion was that it would determine no increase for offices in its jurisdiction from July 1, 2020.

“Matters considered by the tribunal since, including receipt by the tribunal of a joint request from the Minister for Finance, Senator the Hon Mathias Cormann, and the Minister Assisting the Prime Minister for the Public Service and Cabinet, the Hon Greg Hunt MP, to institute a stay on ­increases to remuneration, entitlements and allowances for all office holders in the tribunal’s jurisdiction, have served only to firm the tribunal’s preliminary conclusion.”

The decisions affect past and present parliamentarians, part-time offices, full-time offices, principal executive offices, secretaries and judicial offices.

When the pay freeze was first announced in April, the Community and Public Sector Union said the wage freeze “just doesn’t make sense” as the government was spending billions of dollars to stimulate the economy and keep people spending.

“Every APS employee will have someone in their families, or know someone, affected by the current economic circumstances. While communities are doing it tough, it’s important the APS helps share the economic burden,” Assistant Minister to the Prime Minister and Cabinet Ben Morton said.

Mr Morton said the public service remained a “critical part of our efforts to minimise the impacts on COVID-19 on the Australian economy for workers and their families”.

“Everyone from the Prime Minister down appreciates the outstanding work the APS is doing.”

CPSU nat­ional secretary Melissa Donnelly said: “There is no doubt that our members are working longer and harder than ever before to try to meet this unprecedented surge in demand for government services.

“That is why it is so very dis­appointing that the Morrison government’s response to COVID-19 is to freeze the wages of public sector workers who are holding our community together.”