Wages update

28 February 2019

The Government has today written to unions with a proposal which would allow the Government to revise our wages policy while maintaining budget sustainability.

We’ve been meeting with union leaders to canvass efficiencies and improvements to public sector management practices that, if signed off by both parties, would allow the Government to revise its Wages Policy while maintaining budget sustainability.

Efficiencies and improvements discussed at recent meetings include those listed below. Unions to date have agreed to progress consideration of these measures:



  • Removal of waiting time payments, which are outdated provisions in TSS Awards designed for when payrolls were processed manually.
  • Better management of overtime, noting that in a significant number of cases, staff who work part time and then undertake further work in addition to their regular part-time hours receive payment at overtime rates.
  • A Workforce Renewal Incentive Program to renew the workforce whilst maintaining the same number of staff, but lowering the overall salary cost.
  • Ensuring that annual salary progression is based on performance, which means that employees are appropriately rewarded for good performance.
  • Aligning public sector holidays with other jurisdictions (e.g. Easter Tuesday), and the Tasmanian private sector.


  • A review of the State Service, to be conducted over a two year period completed by mid-2021 to consider structural, legislative and cultural improvements that would transform current structures, services and practices and deliver a State Service Act fit for purpose for the 21st century.
  • Based on these actions being agreed our revised wages policy for new agreements, for terms of no less than three years, would be as follows:
    • Year 1 salary increase – 2 per cent
    • Year 2 salary increase – 2.25 per cent
    • Year 3 salary increase – 2.5 per cent

Should these measures listed above not be agreed to, the Government remains willing to discuss other options that unions may wish to propose that would enable us to revise our wages policy, as outlined above, whilst ensuring an affordable and importantly sustainable outcome for the State Budget.

To be clear though, neither the Government nor the unions have proposed any forced redundancies or reductions in frontline services.

We look forward to unions taking this proposal to their members so that we can continue to progress towards an agreement.

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