APS BARGAINING COMMONWEALTH PAY OFFER

Dear Colleagues

I am writing to provide you with an update on APS-wide bargaining for common terms and conditions.

APS‑wide bargaining has been underway since 30 March 2023 and through this process we are taking steps to provide APS employees with fair and equitable conditions of employment. In addition to negotiating a set of common terms and conditions, we are also seeking to provide a fair and affordable pay rise for APS employees.

Last week, I heard claims on pay from all bargaining parties. Today, in my role as Chief Negotiator for your agency during APS-wide bargaining, I tabled the Commonwealth’s pay offer.

You have told us pay is one of the most important matters to you. The Commonwealth’s pay offer as tabled today represents the largest pay increase that APS employees will have received in over ten years.

The Commonwealth’s pay offer is for 10.5% over 3 years with the following breakdown:

1. 4 per cent in the first year.
2. 3.5 per cent in the second year.
3. 3 per cent in the third year.

The date of effect for any agreed pay increase is a matter for APS-wide bargaining.

What this means for you

As an example, an APS employee who currently earns a salary of $95,873 would receive a total pay increase of $10,421, taking their annual salary to $106,294.

A breakdown on how this offer benefits APS employees at different classifications is available on the APSC website at apsc.gov.au.

How did the Commonwealth determine this pay offer?

This is a fair and affordable pay offer which provides a pay rise to APS employees while balancing the Government’s broader fiscal responsibilities on behalf of all Australians. The Commonwealth considered a range of factors when determining its pay offer, including:

• recent wage outcomes across Australia
• numerous economic indicators
• the current labour market
• Budgetary considerations

More details can be found on apsc.gov.au.

What happens next?

We will continue negotiations on pay claims and other matters such as flexible work arrangements and various leave types to develop a package that meets the needs of agencies and employees.

In addition to the proposed headline pay increase, we will seek to take initial steps to reduce pay fragmentation. Proposals on pay fragmentation will be discussed in a bargaining meeting in late May 2023 and may provide additional pay rises for employees in agencies with the lowest pay scales.

Overall, we are following the below process:

1. APS-wide bargaining aims to improve commonality in pay and conditions across the APS, including a pay rise for APS employees and taking steps to reduce pay fragmentation.
2. Agency-level bargaining enables agencies to negotiate terms that are necessary to support their particular needs and operating model.
3. APS employees will vote on their agency’s proposed enterprise agreement once – at the end of agency-level bargaining. This agreement will include common conditions negotiated during APS-wide bargaining.

We aim to move through this as quickly as possible, with an expectation that most enterprise agreements be operational before the end of March 2024 and some finalised by the end of 2023.

How do I find out more about APS bargaining?

Further information about this pay offer and other APS bargaining updates is available on the APSC website at apsc.gov.au.

Please also subscribe to APS bargaining news to hear directly from the APSC. I recommend you stay engaged in the process so you can make an informed decision when it’s your turn to vote on the entire package, including the final pay offer.

Kind regards,