The NSW Government is putting a further squeeze on public sector employees’ pay by revealing it will make them pay for the Federal Government’s compulsory rise in superannuation out of their own pockets, the Public Service Association said today.
Treasurer Mike Baird has confirmed he considers the rise in compulsory superannuation – 0.25% from July as part of a staggered rise from 9 to 12% – as an employee-related expense falling under the Government’s 2.5% cap.
This is a blow to public sector workers already saddled with a sub-inflation wage cap, said Public Service Association General Secretary Anne Gardiner.
“The NSW government has set the bar very low in the way it has made this decision,” she said.
“There has been no consultation with public sector unions. We would have expected the biggest employer in NSW to show more respect for its workers.
“The rise in superannuation means the cap has now effectively been reduced to around 2.25% and will reduce further as the compulsory superannuation rate increases.
“This is supposed to be an employer contribution to superannuation but the NSW Government is shifting the cost of this increase on to their employees.
“Unlike other employees in NSW, public sector workers can’t even offset this superannuation cost with increased productivity because this is not permitted under the O’Farrell Government’s wages policy.”