COVID-19 related freeze on public sector wage increases won't be extended

The government determined to pause pay rises for public servants, many of which had negotiated a 2 per cent increase, in April for six months due to the COVID-19 pandemic.

This means that any public servant who was due a wage increase in the 12 months following April 14 will receive it six months later than initially thought.

Assistant minister Ben Morton, who oversees the public service, said at the time that the APS should share the economic burden of the pandemic with the broader community.

Public sector unions lashed the decision to freeze wage increases and have welcomed the announcement the freeze would not be extended beyond the initial six-month period.

Mr Morton confirmed "the wage increase deferral policy is being implemented as it was announced," meaning it won't be extended.

"I thank employees across Australian government agencies for their understanding of the deferral of their wage increases for six months in line with the government's decision," Mr Morton said.

It was argued the freeze was a largely symbolic gesture as the amount saved by delaying the increases was negligible. According to the CPSU, the wage increases amounted to 0.058 per cent of the budget.

CPSU national secretary Melissa Donnelly welcomed the news the freeze would not be extended, but argued it shouldn't have been implemented in the first place.

"[The decision] came on the back of years of wage freezes as a result of the government's unfair bargaining policy," Ms Donnelly said.

"It failed to recognise the invaluable contribution and dedication of APS employees during the pandemic, drought, and bushfires.

"The wage freeze was bad economic policy, it didn't help anyone; our community needs stimulus and cutting wages just won't help."

She said the union had made the case to government, over the past six months, of the invaluable work that was being done by public servants and the impact of the freeze.

Professionals Australia, the union representing scientists, engineers and other specialists in government, also argued that the wage freeze would not achieve the government's aims.

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The union's Australian government group director, Dale Beasley, said he was glad the government had finally looked beyond the pay lever in relation to the public sector.

"We have always said that wage freezes aren't the right tool to generate economic activity to bring us out of recession, or to get the most out of the APS at this challenging time," Mr Beasley said.

"At every challenge 2020 has thrown at us, APS employees have conducted themselves professionally, have demonstrated their efficiency, adaptability and dedication".

In April, Deloitte economist Chris Richardson said that despite the pay rise freeze, the public sector would likely still be better off than the Australian average.

The ACT government opted to freeze wages for its most senior public servants and statutory office holders but did not apply that to non-executive public servants.