More than 50,000 health workers in New South Wales (NSW) will receive a pay rise after the government reached a deal with the Health Services Union (HSU).
The agreement will provide workers with a 3.5 percent pay rise, along with a 0.5 percent superannuation boost.
Eligible workers will also receive a $1,000 (US$656) cost of living payment if inflation rises by more than 4 percent in Sydney.
The pay boost will cover a range of jobs including hospital cleaners, allied health, scientists, patient transport officers, and others.
In addition, eligible workers will also get 100 percent salary packaging, up from 70 percent, as of July 1, 2024. This means an employee can allocate their pre-tax salary towards eligible expenses, increasing their take home pay.
Health Minister Ryan Park said the agreement delivers on a key election commitment to provide 100 percent salary packaging and abolish the wages cap.
“This has been a collaborative approach, which builds on the four-year agreement reached with paramedics late last year.”
Park confirmed the pay rise would assist public health workers, psychologists, patient support assistants, cleaners, cooks, technicians, interpreters, administration staff, security officers, and Aboriginal health workers.
As part of the agreement, a memorandum of understanding has been reached that commits to working on a three year wage agreement after the one year award expires.
This came after members rejected an offer that did not include the 100 percent packaging deal earlier this year.
HSU secretary Gerard Hayes described the agreement as a generational advance for health workers who have “earned every cent” of the pay rise.
“The reform to salary packaging will be life-changing for hard working people on modest incomes,” he said.
“Health workers deserve 100 percent of their salary packaging tax benefits and this shows the strength of a union that stands together to get things done”
Industrial Relations Minister Sophie Cotsis said the government is continuing to work on rebuilding the state’s essential services and the industrial relations system.
“We were elected on a mandate to fix the recruitment and retention crisis in essential services and that is what we are doing,” Cotsis said.
Meanwhile, the Liberal Opposition has recently raised concerns the NSW health system is stretched, accusing the premier of being someone who would “rather fight with striking nurses than focus on improving health outcomes for the community.”
