The Government’s updated wages policy significantly improves the outlook for Victorian Public Sector workers, lifting the funding for wage rises from 1.5% to 3% per annum, and removing the cap on wage rises.

The new wages policy also allows for a lump-sum sign on bonus equal to .5% of overall agreement costs.

However public sector unions have warned that many services will continue to face extreme recruitment and retention difficulties, as wages continue to lag behind cost of living increases.

Luke Hilakari, Secretary of Victorian Trades Hall Council:

“Victorians rely on strong, well-funded and well-staffed public services". 

“With inflation at its highest rate in three decades, we need to see the right incentives in place to help retain, recruit and reward public sector workers.”

“Doubling wages policy from 1.5% to 3% per annum wages funding is welcome, but it will not see workers getting ahead with continued high inflation”.

“1 in 10 workers are employed by the public sector and it’s agencies. These people were some of the heroes of the pandemic. Victorians rely every day on a well-functioning and well supported public sector.” 

“We want the public sector to be a competitive employer of choice and that means looking at alternative modern employment practices around flexibility and the four-day working week to recruit and retain workers.”

Media contact: Edwina Byrne 0409017140