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Albanese govt needs to strike the right balance with public sector pay

18 0
15.10.2026

After months of negotiations over federal public servants' pay and conditions, the Albanese government has put an offer on the table.

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The proposed APS-wide increase of 9 per cent over three years would mean APS6 employees, who earn a median salary of $107,500, would receive a total pay increase of $9675 over the three years.

Additional increases of up to 1.5 per cent for some employees in lower-paying agencies would be part of a potential deal that seeks to progress greater consistency of pay rates across the bureaucracy.

For public sector workers struggling with the cost of living amid rising costs of housing, groceries and other essentials, it doesn't sound like much.

But while federal bureaucrats are frustrated and dissatisfied with pay - as evidenced by the 2026 APS Employee Census, which found just 61 per cent believe they are adequately remunerated - the government needs to tread a careful line.

Voters perceive a need for prudent spending at a time of global uncertainty and the government needs to find room in a tight budget for competing priorities.

The Community and Public Sector Union, which represents the most APS employees, has come out swinging against the Commonwealth offer.

CPSU National Secretary Rebecca Fawcett says it "falls short of what public sector workers deserve," as the union pushes for 15 per cent over three years (or the consumer price index if it is higher) and a poll of members is expected to conclude the offer is "not good enough."

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© Canberra Times