While APS wage growth slows, bonuses for senior executives remain largely unchanged. 

The Federal Government last year imposed a six month-deferral on public service wage rises due in the 12 months from April 2020, which has seen wage growth drop to its lowest level in years.

However, agencies continue to issue big performance bonuses to senior executives. 

The Australian Public Service annual remuneration report shows salaries for rank-and-file public servants increased by just 0.8 per cent in 2020, due to the government’s claim that bureaucrats must share the economic burden of COVID-19.

But despite being told to exercise restraint, senior staff received a similar number of bonuses in 2020 as they did in the previous year. 

Community and Public Sector Union national secretary Melissa Donnelly says that by effectively cutting public sector wages, the government stopped the workers from spending as much as they would have in their local communities.

“This outcome just goes to show the wage freeze and index cap was only ever a quick and dirty political play to appease the Coalition's base, and not a thoughtful or considered change to the bargaining policy,” she said.

There is another factor influencing public sector pay too - the move from enterprise bargaining agreements to workplace determinations.

Machinery of government changes that cut the number of departments from 18 to 14 last year pushed more public servants onto workplace determinations, which now set the pay of nearly two-thirds of Australian Public Service staff.

“Rather than being a model employer and driving broader economic growth by improving public sector workers' wages, this government has chosen to lock APS employees into a race to the bottom on wages with the private sector,” Ms Donnelly said.

“In some cases agencies and employees will decide to opt for a determination instead to avoid having to go through a bargaining process that doesn't let employees and agencies negotiate freely.

“It is ideological, it's not productive, it's not working, and it's contributing to staff dissatisfaction and the hollowing out of service delivery and capacity for the community.”

The public service commission says workplace determinations allow agencies to better suit their own needs.