The New South Wales (NSW) government has offered a 10.5 per cent pay rise over three years for public sector workers. 

The proposal targets over 400,000 employees, including nurses, allied health workers, firefighters, prison guards, community case workers, and Service NSW employees. 

Paramedics, who received significant pay increases last year, are excluded from this deal.

The Minns government proposes a phased pay increase: 4 per cent in the first year, 3.5 per cent in the second, and 3 per cent in the third, including superannuation increases. 

Additionally, a $1,000 cost of living payment is included if inflation exceeds 4.5 per cent in any year.

The offer falls short of union demands. 

The Fire Brigade Employees Union (FBEU) is advocating for a 20 per cent increase over three years, while the Nurses and Midwives' Association is seeking a 15 per cent rise in 2024, excluding superannuation. The Police Association has called for a 25 per cent pay rise over four years.

Treasurer Daniel Mookhey emphasised the offer's alignment with forecast inflation and its intent to provide certainty for families across NSW. 

“This is about giving certainty for hard-working families across NSW, with a three-year offer to see pay and conditions improve,” Mr Mookhey said. 

“It creates a new, fair framework that can deliver a better outcome for everyone.”

The government hopes to negotiate “productivity reforms” with unions in exchange for potential further pay increases. 

This proposal comes after the Labor government scrapped the previous wages cap following their election victory last year, enabling substantial pay increases for certain sectors, including paramedics and teachers. 

However, the current offer does not apply to MPs, public officials, or senior executives, whose pay remains frozen.

The offer has now been sent to unions for consideration. Negotiations are expected to be intense.