The Minns Labor Government will introduce legislation when Parliament returns in August to limit the pay rises for NSW parliamentarians to 3.5 per cent in 2025-2026.
The independent Parliamentary Remuneration Tribunal (PRT) has awarded a 4 per cent for NSW politicians.
This comes as the Government's legislated wage freeze of the pay of MPs, senior public servants, judges, the governor, and other office holders for two years came to an end on July 1.
It was a significant budget measure that saved the NSW budget hundreds of millions of dollars.
Given the Tribunal's decision to award a higher increase than the base increase offered to essential public sector workers, the Minns Labor Government believes the most responsible and fair course of action is to align the parliamentary pay rise with the pay offer of 3.5 per cent to the general public sector workforce last financial year.
This ensures consistency with broader public sector wage settings and reflects the Government's commitment to responsible budget management and fairness.
This will mean in the first three years of the Minns Labor Government, essential workers will have received a minimum pay rise of 10.5 per cent, three times higher than the 3.5 per cent plus super which politicians will have received in three years.
Premier Chris Minns said:
"We removed the wages cap so we could deliver fair pay increases to the essential workers who keep NSW running - like teachers, paramedics, nurses, firefighters and police."
Special Minister of State John Graham said:
"While the government has settled the majority of public sector pay claims, there are still important pay disputes underway. We have taken the view it is the wrong moment for parliamentarian pay to increase by 4%."