The Public Service Association is pushing back against suggestions public servants have received 10 percent pay rises, saying the figure relates to advertised vacancies rather than the wages actually being paid to existing workers.
The dispute follows Prime Minister Christopher Luxon being questioned about SEEK data showing advertised salaries for government roles increased 10 percent in the year to August. SEEK’s Advertised Salary Index measures salaries attached to newly advertised jobs and does not measure pay increases received by the existing public service workforce.
PSA National Secretary Fleur Fitzsimons says the distinction is critical, particularly as thousands of public servants have been involved in industrial action over pay and employment conditions.
The Public Service Commission uses Stats NZ’s Labour Cost Index to monitor actual wage movements across the Public Service and wider public sector. The Commission says the index measures changes in wage and salary rates for the same quality and quantity of labour.
The PSA says those official figures show Public Service pay increased 1.3 percent in the year to June 2026, compared with 1.7 percent across the broader public sector and 2 percent in the private sector.
The debate comes as annual inflation reached 4.1 percent, while even SEEK’s measure of advertised salaries across the entire employment market increased by only 2.6 percent over the year. Wellington recorded the weakest regional advertised salary growth at 1.8 percent.
Separate 2026 research from Motu also found that once jobs of comparable size and responsibilities were compared, public sector positions paid about 4 percent less on average than equivalent private sector jobs.
The PSA argues the figures underline the pressure facing public servants as bargaining continues, while the Government maintains its focus on controlling public-sector expenditure and restructuring the state sector.
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