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Promised pay rises for NSW frontline employees shall be funded by a two-year freeze on the wages of state politicians and public service senior executives.
Laws shall be launched to NSW parliament on Tuesday freezing the salaries of MPs and executives from July and redirecting the tens of millions of {dollars} in financial savings to nurses, paramedics, academics and different frontline employees.
The transfer was signed off by cupboard on Monday, two months after Labor was swept to energy on the promise of lifting the three per cent cap on public sector wages.
Premier Chris Minns has been underneath growing stress to ship on a key election dedication, with well being unions threatening to escalate industrial motion.
“We mentioned we’d freeze politicians’ pay and that is what our invoice does,” Mr Minns mentioned in a press release.
“Now we have inherited a difficult price range, however budgets are about priorities.
“Our precedence is rebuilding our important providers and investing in frontline employees.”
Treasury estimates the transfer will save about $260 million over 4 years – funds that shall be invested into important providers, resembling faculties and hospitals.
Beneath the previous authorities, the annual wages invoice for senior executives throughout NSW authorities businesses, departments and state-owned firms had ballooned to about $1 billion a 12 months, the federal government mentioned in a press release.
The Minns Labor authorities promised to finish the “pay freeze on the frontline employees who ship important providers to folks throughout our state”, whereas reaching “accountable price range financial savings”.
Senior executives coated by the freeze embody departmental secretaries, company chief govt officers, govt workplace holders, commissioners and judicial officers.
The senior govt and politician pay freeze was supported by each main events forward of the March election.
One invoice will successfully freeze the fundamental wage of all parliamentarians for 2 years, whereas a second invoice will implement the pay freeze for senior executives in addition to judicial and non-judicial workplace holders.
Particular Minister of State John Graham says the coalition authorities froze the pay packets of frontline employees, whereas senior govt salaries hit $1 billion.
“That is about reinvesting within the public service, reinvesting in important employees,” he mentioned.
“What we’re doing is capping the highest finish of the service to reinvest in front-line employees.”
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