Christopher Luxon addresses rising public-sector salary advertisements

New Zealand Prime Minister Christopher Luxon expressed surprise regarding job advertisement data showing a 10% annual increase in advertised public-sector salaries. During an interview, Luxon noted that the government has implemented a cap on full-time-equivalent (FTE) staffing levels and stated that such salary increases are not what the administration intends to see.

The Public Service Association (PSA) has responded to the data, clarifying that the SEEK Advertised Salary Index reflects what employers advertise for new roles rather than actual current wages. The PSA noted that official figures from the Public Service Commission show public service pay rose only 1.3% in the year to June, which is significantly lower than the 4.1% inflation rate.

Discrepancies between advertised rates and actual pay may be driven by specific roles, such as senior managers or specialists. The PSA highlighted that many workers have recently engaged in industrial action because current pay offers remain below the rate of inflation.