The Government has today welcomed progress on public sector pay adjustment (PSPA) agreements and the release of the updated public service pay guidance by the Public Service Commission.
PSPA potentially affects more than 150 collective agreements in the Public Service, Crown agents, Te Whatu Ora – Health New Zealand, state and state-integrated schools, registered kindergarten teachers in free kindergartens, New Zealand Police, and the New Zealand Defence Force.
“More than a dozen collective agreements are now settled in the public service, Crown Agents, and education sectors in line with the agreed PSPA with more underway,” said Minister for the Public Service, Andrew Little.
“A significant number of public sector workers are likely to enter negotiations over the coming year, and so following a proposal by the New Zealand Council of Trade Unions (NZCTU), the Government agreed to look into a pay adjustment for all workers at the same time.”
Under the agreed terms of the PSPA, workers would receive lump-sum payments of $4,000 in year one, and either $2,000 or 3% of their annual income in year two.
“This is an attempt to give public sector workers an affordable increase that balances the current economic environment and cost of living pressures,” said Minister Little.
“Previous guidance in 2020 had a greater emphasis on pay restraint, especially for higher paid roles, and was fit for purpose in response to COVID.
“The pay guidance update recognises the current cost of living pressures being felt across the country and the economy.
“I am confident this approach strikes the right balance in difficult times,” Mr Little said.