Update on PSUWA negotiations (20 Mar 2026)

Hello everyone

As wage negotiations continue to progress across the State Service, I want to emphasise my genuine commitment to reach agreement with unions on the Public Sector Unions Wages Agreement (PSUWA) by 31 March.

Today I sent a revised letter of offer to all unions party to the PSUWA. I believe this revised strong offer has the right balance after a period of intensive negotiations with unions and I thank unions for their constructive engagement.

The revised offer includes salary increases of 3% in the first year, 3% in the second year and 2.75% in the third year. As previously advised, if agreement is reached by 31 March the government has committed that the first year salary increase will be paid from the first full pay period on or after (ffppooa) 1 December 2025.

The offer also includes structural reform providing a further boost to the salaries of State Service employees from the date of acceptance:

• $800 increase in the base salary of bands 1-5 officers in year one and year two.
• $600 increase in the base salary of band 6 officers in year one and two.
• $500 increase in the base salary of band 7 and 8 officers in year one and two.
• Salary increase in year three to be brought forward from December 2027 to the ffppooa 1 September 2027.

The revised offer also strengthens and modernises several standard employment conditions, including the following:

• A new entitlement to five days of reproductive leave.
• A reduction in the qualifying period for parental leave from 52 weeks to 40 weeks.
• Greater flexibility for employees accessing gender affirmation leave.
• Amendments to recreation leave that provides that the employer respond to recreation leave requests within 14 days and leave to not be unreasonably refused.
• Increase of family violence leave from 20 to 25 days.
• Expand “immediate family” definition to include aunt, uncle, niece and nephew.
• Increase the amount of personal leave to be used for caring purposes from 20 days to 40 days.
• Expand personal leave so it can be taken to attend medical appointments.
• Improvements to enable part-time employees to attend delegate training.
• A new entitlement regarding the right to disconnect.

Update on the progress of other State Service agreements

As I mentioned earlier, wage negotiations are happening right across the State Service.

A revised letter of offer was provided yesterday to the Australian Education Union (AEU) for the Teachers Agreement. In addition to the salary increases of 3% in the first year, 3% in the second year and 2.75% in the third year, it also provides a structural increase in salaries in the first year for the majority of teachers and assistant principals, and increases to allowances paid for the term of agreement, amongst other condition improvements. The offer is open until 5pm on 25 March.

We have also been continuing constructive discussions with unions on the agreements covering radiologists, allied health professionals, Port Arthur, dental officers, paramedics and engineers and will soon be providing offers, to ensure agreement can be reached by 31 March, and salary increases can be progressed.

It was also pleasing that the CPSU accepted the recent offer for ministerial drivers, enabling their salary increase to take effect from 1 December 2025.

Discussions with unions on the Nurses and Midwives Agreement is about to start, noting the next salary increase anticipated for nurses is December 2026.

A packaged approach to agreements

I have always been transparent about the need for any proposals or final offers to include offsets as part of a total package for an agreement. Each agreement covers a different group of employees and will have its own specific matters included that are important to that occupational group. Not every package for each agreement will look the same, nor are they simply comparable.

We have considered the need for all our agreements to have the right balance between fiscal responsibility and workforce needs, while delivering meaningful improvements to standard conditions and a responsible salary outcome.

I am pleased unions are engaging with us to work towards agreements that are fair, reasonable and affordable so State Service employees can receive a pay rise soon.

I will continue to keep you informed and you will also hear from your Head of Agency as progress continues on agency-specific areas of interest.

I see every day the results of the work we do as State Service employees to support the Tasmanian community, and I want to thank you for your continued professionalism and dedication.

Kind regards
Kath

Kathrine Morgan-Wicks
Head of the State Service
Secretary, Department of Premier and Cabinet
20 Mar 2026