In a significant move aimed at improving the welfare of healthcare workers, New South Wales (NSW) has agreed to a new deal that will see more than 50,000 health employees benefit from an 8.5% pay rise over the next two years.
The deal, which includes crucial improvements to working conditions, follows a Memorandum of Understanding (MoU) signed between the state government and the Health Services Union (HSU) on Tuesday. This agreement marks a critical step in addressing long-standing issues of pay and working conditions within the state’s public health system.
The new MoU is set to have a major impact on a diverse group of workers, including allied health professionals, hospital cleaners, scientists, patient transport officers, and security staff. The government aims to ensure the retention and recruitment of essential healthcare staff while also addressing ongoing concerns over the rising pressures faced by workers in the sector.
Key Details of the Pay Rise and Superannuation Boost
Under the terms of the new agreement, health workers will receive a four per cent pay rise, along with a 0.5% increase in superannuation contributions, both backdated to July 1, 2025. A further four per cent wage increase will follow in July 2026. These pay increases are designed to address ongoing concerns about wage stagnation and to help retain skilled professionals within the healthcare system.
According to NSW Treasurer Daniel Mookhey, this move is part of a broader effort to strengthen the state’s healthcare system. “Delivering increased wages and benefits to more than 50,000 health workers is a major next step in repairing our state’s healthcare,” he said. In addition to these pay rises, the deal addresses the evolving roles of healthcare workers, particularly those in allied health, whose responsibilities have expanded significantly over the years.
Gerard Hayes, the Health Services Union Secretary, noted the importance of the agreement in recognising the true value of healthcare workers in NSW. “Our allied health workers have been held back by the same award for two decades,” Hayes said. “but their skills and roles in the state’s health care system have evolved greatly,”
Improved Working Conditions to Support Staff Wellbeing
The MoU also brings significant changes to working conditions, with a focus on improving staff wellbeing. One of the key changes is the extension of rest periods between shifts, with the minimum time between rostered shifts now increased to 10 hours, up from the previous eight hours. This change aims to help alleviate fatigue, a growing concern among healthcare workers.
In addition, the agreement mandates that workers receive four weeks’ notice for any changes to their rosters, a substantial improvement from the current two-week requirement. These adjustments are seen as crucial steps in improving staff morale and creating a more supportive working environment.
According to NSW Health Minister Ryan Park, these reforms are vital for enhancing the quality of care provided by health workers and ensuring the sustainability of the state’s healthcare system, particularly in regional areas where recruitment is often more challenging.
