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Sunday, September 20, 2026

Will the public sectors pay increase guidelines tackle the cost of ... - Stuff

David Burton is an employment law barrister and a regular opinion contributor.

OPINION: Public servants have been waiting some time to see some movement in the so-called “pay restraint” imposed on government agencies following the Covid-19 epidemic. It has been anticipated that the Public Services Commission will shortly issue new guidelines for pay increases in the public service.

While efforts are made to ensure that government workers are fairly compensated their pay often lags behind that of their private sector counterparts.

This disparity has become more pronounced since the Government applied a pay freeze in 2020, citing the threat of rising Covid-19. The Government softened its 2020 approach slightly in 2021 when the commission directed government agencies to ensure that pay increases did not occur unless they met strict criteria.

Agencies were permitted to provide modest pay increases for staff earning less than $60,000. Agencies could provide for small increases in pay for lower to middle earners by a modest progression within their salary band, or where there was a demonstrable recruitment demand that was not being met.

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There were to be no increases to salary bands or pay increases for those paid over $100,000. In exceptional circumstances agencies could obtain...



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