The Minns Labor Government is delivering cost of living relief to over 100,000 public sector workers as part of the Government’s wages bargaining framework, ensuring public sector workers receive certainty and support during a cost-of-living crisis.

In 2024, the Government and the Public Service Association agreed that in the event of an inflation shock, such as that driven by the current conflict in the Middle East, additional support should follow to help workers manage rising costs.

The agreement provides a $1,000 payment to employees if the annual Sydney Consumer Price Index (CPI) exceeds 4 per cent from the March quarter 2026 and/or 2027. 

This builds on Labor’s commitment to work collaboratively with unions to deliver fair outcomes for workers after years of wage suppression under the former Liberal-National Government’s wages freeze.

This is the latest milestone in the Minns Labor Government’s plan to build a better and stronger workforce, with well-paid essential workers with better conditions, which includes:

• Lifting the public sector wages cap
• Restoring genuine enterprise bargaining across the public sector
• Supporting workforce stability in critical services such as health, education, and transport

Minister for Industrial Relations Sophie Cotsis said:

“After 12 years of neglect by the former coalition’s wage freeze, this agreement ensures workers receive what was negotiated through the bargaining process. 

“This payment was included in the Government’s wages offer to ensure support for essential workers in times of elevated inflation just like this.

“We know working families across NSW are under real financial pressure right now.

“Our approach is twofold: practical cost-of-living relief today, and long-term reform to make life more affordable in the future.

 “The Minns Labor Government believes in respectful and constructive bargaining, and this agreement demonstrates our commitment to getting fair deals done.”