A major pay award for nurses and midwives in NSW will cost billions, the state’s treasurer has warned.
Following a landmark court ruling, tens of thousands of health workers in the state will see their pay cheques swell.
Following a long-running pay dispute, the Minns government has been ordered to lift the pay of hardworking nurses, midwives and assistants in nursing.
Speaking following the ruling, state treasurer Daniel Mookhey warned that the cost of the wage boost will reach the billions.
He said: “We make no apologies for choosing to invest in the wages of essential workers, so we can provide better essential services – particularly at a time when working families are under such pressure.
“My own estimations are that the additional cost will be in the billions of dollars, but that is to be expected given this is the biggest cohort of workers in the NSW health system.”
He said he expected this cost to be spread over the three years of the award.
It comes after the state’s Industrial Relations Commission ruled the nursing sector had become “undervalued”, with workers hit particularly hard in the pocket since the Covid-19 pandemic.
However, the IRC stopped short of the association’s request for any increase to be backdated to 2024, highlighting the impact this would have on the state’s fiscal position.
Instead, the payrises would be backdated to July 1, 2025 and then incremented over the next few years.
The awards ordered are as follows:
• 16pc increase for registered nurses and midwives (10pc backdated to July 1, 2025 and 3pc per year for the next two years)
18pc increase for enrolled nurses (12pc backdated, 3pc per year the next years)
• 28pc increase for AINs (22pc backdated, 3pc per year for the next two years)
However, IRC president Ingmar Taylor also heeded warnings of the financial impact the award would have on the state and wider country.
Delivering his ruling following an application from the NSW Nurses and Midwives Association, Mr Taylor highlighted the impact the pandemic had on nurses and midwives.
“The extraordinary and unexpectedly high rates of inflation caused by the Covid-19 crisis provides a proper basis for a one-off reset (of pay),” Mr Taylor said.
“Nurses and midwives are currently undervalued and deserve a one-off increase.”
However, the president went on to warn of the impact the pay award may have on the state’s wider economy.
He said: “Any increase in pay will need to be debt-funded.
“For every 1pc increase in pay, the NSW government needs to fund an additional $75.4m per year.
“These additional costs reduce the NSW government’s capacity to do other things, including fund infrastructure and provide services.
“Such considerations are relevant factors to determining the outcome, but not barriers to appropriate increases.”
Speaking outside of the court following the hearing, Michael Whaites, general secretary of the NSWNMA said: “It is our members’ determination that have ensured the issues they have been fighting for, for years, were brought to light.
“We argued that the work of our members were undervalued. Undervalued because of the way their work has changed over the last 16 years and because they are a feminised workforce.
“Today’s announcement gives a historic, record-breaking pay deal for nurses and midwives in NSW.
“And yet, for registered nurses it is not enough to fix the structured reform we need in this state.”
He welcomed the outcome for enrolled nurses and assistants in nursing, but added that “there is more work to be done” – particularly for registered nurses.
He added: “Here again, we hear that registered nurses should be paid more, but we just can’t afford it.
“This is an outcome from the NSW government that says women’s work has to remain undervalued because of the economy. That is an appalling position to be in in 2026.”
