Finally: a long-overdue reality check on public sector pay – but more is needed

The federal government has announced a new wages policy for the Australian government employees and a review of performance bonuses for Commonwealth senior executives.

Wage increases will now not be allowed to exceed wage rises in the private sector. However public sector wage rises will follow private sector wage growth when it exceeds the current two per cent wages cap.

Assistant Minister to the Prime Minister and Cabinet, Ben Morton, said the scheme “will ensure that wage increases for Commonwealth public sector employees will be in step with their fellow Australians.”

This is a long-overdue commitment.

“These changes will be made as current arrangements by departments and agencies finish and need to be renegotiated….