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Public Sector Wages increase by $4.5 b under Labor

2017 Budget Fast Facts

Public Sector Wages

 

Public sector wages have increased by 24.4% or $4.5b since Labor came to office.

 

The pre-election budget update forecast employee expenses of $18.5b for the 2014-15 financial year. This year’s budget puts employee expenses at $23b for the 2017-18 financial year.

 

The public sector wage bill has increased substantially under the Andrews Government, in part owing to deals to appease union mates.  At the same time, the wages of ordinary Victorians has been revised down in every budget and budget update since Labor took office (see the table below).

 

Wage price index (%)      
  2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Pre-election Budget Update 3.3 3.5 3.5 3.5      
2014-15 Budget Update 2.8 3.3 3.5 3.5      
2015-16 Budget 2.8 3.3 3.5 3.5 3.5    
2014-15 Annual Financial Report 2.7            
2015-16 Budget Update   3.0 3.3 3.5 3.5    
2016-17 Budget   2.5 2.8 3.0 3.3 3.5  
2015-16 Annual Financial Report   2.3          
2016-17 Budget Update     2.3 2.5 3.0 3.5  
2017-18 Budget     2.0 1.9 1.8 1.8 1.8

 

(Reference: Budget Paper 2, pages 26 and 50)

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