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Moving to the new Wages Policy 2022

Information about the new Victorian Public Sector Wages Policy, which will apply from 1 January 2022.

On 15 May 2021, the Treasurer of Victoria announced changes to the Victorian Public Sector Wages Policy that will apply from 1 January 2022.

From that date, the annual cap on wages and conditions for the Wages Policy primary pathway will be adjusted from 2 per cent to 1.5 per cent.

Additional changes to allowances and other conditions (not general wages) will continue to be available to address key operational or strategic priorities, where they are fully funded from appropriate offsets, and capped at 0.5 per cent of the salary base per annum.

A limited one-year rollover option with a 2 per cent increase will be available for parties whose current enterprise agreements reach their nominal expiry date in 2022.

Transitional arrangements will permit parties whose agreements nominally expire prior to 1 January 2022 to reach agreement under the current wages policy, provided applicable timelines are met.

Download the Victorian Public Sector Wages Policy 2022: 

The current Victorian Public Sector Wages Policy (2019-2021) is available here.

Transitional arrangements

Parties to enterprise agreements that will nominally expire before 1 January 2022 have the opportunity to finalise new agreements under the current wages policy, before the new Wages Policy comes into effect on that date.

To finalise new agreements under the current wages policy, ensuring adequate time for government approvals, parties and employers must meet the following timeframe

Where bargaining has already been approved

Government approval of final agreement required by 31 December 2021.

To meet this timeframe, in-principle agreement must be reached, and final agreement submitted to government for approval by no later than 30 September 2021.

Employers are required to inform unions/bargaining representatives/employees that any offer made under current wages policy requires agreement to be reached within these timeframes. 

Where bargaining is yet to be approved

Approval to bargain request must be received by 1 August 2021.

In-principle agreement that Industrial Relations Victoria (IRV) and the Department of Treasury and Finance (DTF) consider will be capable of approval by Government must be reached by 1 December 2021. Government approval for these agreements may occur after 1 January 2022.

Employers are required to inform unions/bargaining representatives/employees that any offer made under current wages policy requires agreement to be reached within these timeframes.

Reviewed 28 May 2021

Contact us

Industrial Relations Victoria

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