We have an offer

We have received a proposal from Public Service employers for a Public Service Pay Adjustment (PSPA).  This is being offered to PSA members working for public service departments.  We are advocating with Crown entity and SOE employers to at least match this offer.

Thank you for getting in behind our campaign for a cost of living pay adjustment for everyone. Our work to achieve this for all members continues as does our advocacy for you. When we stand together, we are stronger.

Who does this offer apply to?

The proposal employers have offered applies to public service departments and departmental agencies that have collective agreements which expired in 2022 or will expire this year.

The process of the offer being put to members in each of these agencies is underway.  It has has already been offered and ratified by members in some agencies. If you have not yet heard about the process for your agency, you will hear more soon from your PSA organiser and delegates. 

If you work for a public service department or departmental agency but the collective agreement that applies to you does not expire until after 2023, or you work elsewhere in the public sector, it is unfortunately the employers’ position that this particular proposal will not be offered to you and your agency.

What if it doesn’t apply to me?

It remains our position that everyone is struggling with the increased cost of living and needs a pay increase to enjoy a decent standard of living.  We are continuing to advocate for of a cost of living solution for those out of scope of the current offer.

We also expect to be engaging intensively with Te Kawa Mataaho (Public Service Commission) on the review of the Government’s pay restraint guidance (delayed from the end of last year) and will be advocating for this to enable cost of living pay increases for everyone.

The offer

This adjustment provides at least a $6,000 increase over a twenty-four-month term, with an increase of $4,000 from the commencement of the collective agreement arising from this offer, and a further increase of $2,000 or 3%, whichever is the greater, after a further 12 months (up to a cap that applies at $180,000).

This translates to base salary increases that range from circa 12% for those on $50,000 and circa 7% for those on the median salary of circa $91,000.

The offer also includes a member-only payment on ratification, and a lump-sum payment 12 months later for all workers. See more details below.

This is a better proposal than previous PSPA offers that were rejected by unions. The Government has said this second PSPA offer is the best one they can make.

Each time a PSPA offer is put to members in an agency, there will be a limited time for people who are not already PSA members to join the union and receive the union-only element of the proposal.

Please encourage your colleagues who are not yet members to join.

When we stand together we are stronger.

The detail of the proposal

Collective agreements that expire after 31 December 2023 are not covered by this offer.

Collective agreements that expire in 2022:

  • Two-year (24 month) term.

1 December 2022:

  • $4,000 increase to base salary.
  • $750 lump sum payment to union members (pro-rata for part timers).

1 December 2023:

  • the greater of $2,000 or 3 percent increase to base up to a cap of $180,000*
  • $500 lump sum payment (all employees, pro-rata for part timers).

Collective agreements expiring in 2023:

  • Two-year (24 month) term.

3 April 2023 (variation to expire early):

  • $4,000 increase to base salary.
  • $500 lump sum payment to union members (pro-rata for part timers)*.

3 April 2024:

  • the greater of $2,000 or 3 percent increase to base up to a cap of $180,000.**
  • $500 lump sum payment (all employees, pro-rata for part timers).

*Note members whose CA’s expired in 2022 received $750 in recognition of the delay in settling their bargaining.

** That is, those on salaries over $180,000 receive increases to the same level as those on $180,000

Unions together

History tells us unions are more successful when we work together. Our campaign for whole of public service cost of living pay increases is an opportunity for union members across the country to move the dial for all public sector workers. The PSPA negotiations could benefit tens, if not hundreds of thousands of workers – many of whom are on extremely low wages.

The unions involved in the PSPA negotiations represent 250,000 union members. By joining with the NZCTU and other unions we unite our efforts to secure a decent pay rise for all.

Tell your non-union colleagues to join the PSA. The more of us there are, the louder our voice will be heard.

Frequently Asked Questions

  • The PSPA is a set amount that is applied to a person’s base salary.
  • Annual progression continues and PSPA is on top of that.
  • Adjustments to address pay gaps or implement pay equity settlements are not impacted by the PSPA.
  • Limited number of ineligible people: Chief Executives, people who left their role before 1 December, contractors, and consultants.
  • Most other people are eligible including: − − Employees paid over the maximum of the pay band they are on. − Those on paid secondments and sabbaticals. − Casual employees. − People on various types of leave (details to come).
  • The lump sum payments will be pro-rata for part timers.
  • Agencies will be able to apply their usual policies and practices in some areas (e.g., how they will calculate the payment to casual employees).

What are the next steps?

  • There are a range of collective agreements across the public service at different stages in their lifecycle so we are talking with your delegate bargaining team and employer to confirm how this will apply where you work. 
  • Your bargaining teams are working through the offer and how it will be incorporated into existing agreements before we run a formal ratification process
  • For the offer to be accepted, the people covered by a collective agreement will need to vote to accept it through a normal ratification ballot.
  • People within the coverage of this offer but for whom there is no applicable collective agreement will receive an individual offer from their employer.

They will need to be PSA members by the date that the offer is ratified by members in their agency.

Alternative Stand Together resources here 

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Highlights from the Stand Together Fair Pay for Public Sector webinar

News articles on the PSPA


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