Tens of thousands of frontline community services workers will receive a 3.5 per cent pay rise as part of the Minns Labor Government's 2025-26 Budget.
The pay rise is the result of a Budget decision to provide $122 million of additional funding to Non-Government Organisations so they can pay the increase in the minimum wage for community services workers. It follows the Fair Work Commission's annual minimum wage determination.
Those receiving the pay rise include crisis accommodation workers, counsellors, social workers, youth workers and legal officers working for organisations with relevant NSW government contracts.
A typical community service worker is $57.29 better of per week after this year's minimum wage decision. In total, their wages are 202.22 higher after the Minns Government's responses to Fair Work decisions in its first three budgets. Around 80 per cent of these workers are women.
The contracts relate to services delivered on behalf of Department of Communities and Justice, NSW Health, Department of Education, Department of Customer Service and the Rental Bond Board.
The increase follows the 2025-26 Budget's record $1.2 billion investment in the state's child protection system. The child protection package includes a 20 per cent increase in the foster carer allowance, as well as funding for more, better trained public sector caseworkers.
The Minns Labor Government is committed to getting real wages moving, having reached multi-year agreements with more than 60 per cent of the public sector workforce and delivering real wages growth for the first time since 2019-20, after abolishing the Coalition's unfair wages cap.
Real wages:
- Have grown 1.2% under the Minns Government since March 2023.
- Fell by 1.2% under the former Liberal Government.
- Are expected to grow by an average of 0.4% per year over the coming four years to June 2029.
Quotes attributable to Treasurer Daniel Mookhey:
"We are making sure crisis workers, counsellors and youth workers get the pay rise they deserve, while their employers can get on with grappling with some of our toughest social challenges.
"As real wages begin to grow again in NSW, this $122 million funding injection will make sure real wages grow for community service workers too."
Quotes attributable to Minister for Families and Communities Kate Washington:
"This is about supporting the people who support our communities.
"These workers provide vital support to children, families, and vulnerable people - often in times of emergency and crisis.
"This pay rise is an important step in valuing that work, because communities thrive when our frontline staff are properly supported."
Quotes attributable to Cara Varian, CEO of the NSW Council of Social Services:
"NCOSS welcomes the NSW Government's decision to increase funding to reflect the rising costs of delivering essential social services for communities across NSW.
"Reliable, sustained indexation is vital to ensure social services organisations can continue to support people and communities in need.
"We look forward to working with the NSW Government to build on this step by implementing their reforms, which will provide funding certainty for the social service sector across the state, such as an evidence-based approach to calculating indexation."
Quotes attributable to Angus McFarland, Australian Services Union NSW and ACT Secretary:
"These workers deserve a decent pay rise to keep up with cost of living and to support their own families.
"The 3.5 per cent boost to funding of NGOs in NSW is welcomed by the ASU as the union for these workers.
"This funding injection will mean that service providers can pass on the minimum wage increase for award workers without impacting services or jobs in the industry.
"It also provides the recognition that these workers deserve for their work supporting others in our community."
