Public servants offered sign on bonus to back pay deal

Labor has offered to bring forward a four per cent pay rise by 12 weeks and agreed to a one-off bonus if they accept the 11.2pc deal.

CPSU national secretary Melissa Donnelly

The Albanese government has agreed to pay a one-off bonus ranging from $500 to $1500 to 150,000 federal public servants if they vote to accept Labor’s three year wage offer of 11.2 per cent

The proposed sign-on bonus, a first for federal public servants in a decade, will be payable to workers if proposed agreements are ­finalised by March next year and endorsed by a majority of workers.

Under the deal, which has been endorsed by the Community and Public Sector Union, a proposed 4 per cent pay rise from March 14 next year will be brought forward by 12 weeks to December 21.

It is understood this would represent a one-off bonus equating to an extra $500 for the lowest-paid public servants and around $1500 for those earning $150,000.

APS Bargaining chief negotiator Peter Riordan said by bringing forward the year one pay increase by 12 weeks, “employees now have the opportunity to get an additional payment in their pockets after a successful vote on an agency’s enterprise agreement”.

“While we do not have comprehensive data, we do not believe any ‘sign-on bonuses’ have been provided in the past decade,” he said.

The Community and Public Sector Union said it would recommend members accept the offer which the government described as final.

CPSU national secretary Melissa Donnelly said the union “recommends the overall package, noting it will deliver strong conditions and improved pay without delays”.

“The CPSU has been able to negotiate an improved pay deal for APS employees, without losing any negotiated conditions or delaying pay rises,” she said

“Together, CPSU members demanded more from the Albanese government and together they have secured more. This is a package that will deliver APS employees strong, industry-leading conditions, improved pay and a financial boost without delay”.

In August, the government marginally increased its pay offer to federal public servants to 11.2 per cent over three years, a rise of 0.7 per cent and well below the union claim of 20 per cent.

Community and Public Sector Union members had voted down the government’s initial offer of a 4 per cent pay rise in the first year, 3.5 per cent in the second year and 3 per cent in the third year.

As well as the one-off bonus and the 4 per cent rise from March, the government is proposing increases of 3.8 per cent in March 2025 and 3.4 per cent in March 2026.

The CPSU’s original pay claim sought 9 per cent in the first year, 6 per cent in the second year and 5 per cent in the third year.

In an open letter to employees on Thursday, the APSC said the offer still included a proposed realignment offer for workers scheduled to get a pay increase before March 14 next year.

The government is also proposing base salary increases for nearly 8000 employees in more than 80 agencies that moves towards greater commonality of pay scales across the APS.

“You could get a one-off payment shortly after the successful yes vote,” the APSC told employees. “Your 4 per cent increase in salary would apply from 14 March 2024.

“Under this pay offer, an APS6 employee on the minimum salary range at Services Australia could get an 11.2 per cent ­pay increase over three years, a 1.8 per cent base salary lift over three years, and a one-off payment of $807.”