The Government has employment relations expectations for the public sector.

Ā te Kāwanatanga kawatau hononga taimahiThe Government’s employment relations expectations for the public sector

The Government’s expectations of how public sector employers effectively manage employment relations is outlined in a suite of documents comprising:

Taken together these documents outline, among other things, the Government’s expectations of public sector employers when negotiating employment agreements.

Mō te Tauākī Kaupapa Here Ohu Mahi KāwanatangaAbout the Government Workforce Policy Statement

On 5 May 2021 the Minister for the Public Service issued a Government Workforce Policy Statement (Workforce Policy) setting out the Government's expectations of how it wants the Public Service and most other public sector agencies to effectively manage employment relations.

Government Workforce Policy Statement (PDF, 361 KB)

The Workforce Policy sets out the Government’s expectation that the Public Service is an exemplar employer, one which uses modern, progressive employment practices, and is a great place to work. It also wants a productive unified workforce which is grounded in the spirit of service.

To achieve these goals, the Workforce Policy has 4 key workforce priorities:

  • Employ people fairly, equitably and in a way that allows them to live good lives and participate in the economy.
  • Work collaboratively with unions and other groups to achieve shared goals.
  • Create an inclusive environment for all workers with the aim of achieving a diverse workforce.
  • Achieve the goals within the fiscal context of the Government.

The final priority is particularly important in the COVID-19 environment and the public sector needs to be mindful of the fiscal context the Government is operating in.

With these fiscal conditions continuing, the Government has been clear that pay restraint needs to continue to be exercised across the Public Service for the foreseeable future.

Mō te Aratohu Utu Ratonga TūmatanuiAbout the Public Service Pay Guidance

To help agencies to give effect to the Government’s expectation of pay restraint, the Public Service Commissioner issued Public Service Pay Guidance to Public Service agencies on how he expects they will approach these matters. He has asked other public sector organisations to take the same approach.

Public Service Pay Guidance 

A factsheet outlining information about the Government’s expectation of pay restraint is now available.

Factsheet Pay Restraint April 2022(PDF, 137 KB)

This guidance will be reviewed at the end of 2022.

Ngā tohutohu a te Kaikōmihana About the Commissioner’s further advice on the Workforce Policy and Pay Guidance

On 15 June 2021 the Public Service Commissioner wrote to all agencies to which the Workforce Policy applies formally conveying the Workforce Policy and Pay Guidance. This letter contains advice on how agencies are expected to apply these documents in the agency’s context.

The Workforce Policy Statement and Pay Guidance were published here on 5 May.  Since then they have been the subject of discussions and correspondence between ministers and unions. 

The Workforce Policy and Pay Guidance that were released on 5 May are unchanged except the review date for the Pay Guidance has been brought forward six months to the end of 2022.

The advice to agencies on how to apply the Policy Statement and Pay Guidance is provided in light of the correspondence from Minister Hipkins to the NZ Council of Trade Unions Te Kauae Kaimahi and the Public Service Association Te Pūkenga Here Tikanga Mahi.  It addresses the matters covered in the Minister’s letters.

The advice needs to be read alongside the Workforce Policy and Pay Guidance.

The advice to agencies is reflected in letters that fall into 3 categories:

  • Public Service departments(PDF, 198 KB) that undertake collective bargaining under delegation from the Public Service Commissioner. The Pay Guidance applies to these agencies.
  • Crown agents(PDF, 172 KB) that must give effect to the Workforce Policy. They are asked to take the same approach as outlined in the Pay Guidance.
  • Other organisations(PDF, 172 KB) that must have regard to the Workforce Policy. They are are asked to take the same approach as outlined in the Pay Guidance.

Each agency received the advice in a letter tailored to its organisational form.

Correspondence between ministers and unions(PDF, 194 KB).

Questions and answers

See common questions and answers on the Public Service Pay Guidance and further advice from the Public Service Commissioner.

Public Service Pay Guidance and the Public Service Commissioner’s further advice

Pārongo whakaaetanga tōpūtanga, kerēme utu ōrite hokiInformation on negotiating collective agreements and pay equity claims in the Public Service

The Public Service Commissioner (Commissioner) is responsible for the negotiation of collective agreements in the Public Service.  In practice the powers and functions associated with this are delegated to Public Service chief executives. The Public Service Act 2020 also provides a new role for the Commissioner in relation to pay equity claims in the Public Service, similar to the Commissioner’s role in negotiating collective agreements.

The Commissioner has delegated the functions and powers in respect of both these responsibilities to Public Service chief executives through a single delegation instrument in 2 parts.

Single delegation instrument(PDF, 661 KB) 

The collective agreement (Part A) was updated on 15 June 2021 to reflect the Government Workforce Policy Statement and the Public Service Pay Guidance.

Collective agreement Part A(PDF, 137 KB)

The pay equity part (Part B) delegates the new functions and powers in dealing with pay equity claims. The negotiation of pay equity claims in the Public Service is a powerful tool to give effect to Government policies on achieving pay equity and closing the gender pay gap. 

Pay gaps and pay equity

He raraunga tautokoData to support agencies in bargaining

The Commission reports quarterly on wage movements across the public sector and Public Service, as measured by the Labour Cost Index (LCI). 

  • Labour Cost Index reporting

    Each quarter Te Kawa Mataaho reports on wage movements as measured by the Labour Cost Index (LCI). The LCI is released quarterly by Stats NZ.  It measures changes in salary and wage rates in the labour market for the same quality and quantity of labour. The Index is “adjusted”, moving with changes in the price of labour, holding the volume of labour (quality and quantity) static.  

    The Commission uses the LCI to monitor and oversee wage movements, including bargaining outcomes, in the public sector and select public sector sub-sectors, including the Public Service, and the health and education sectors.

    Latest Report

    Labour Cost Index - June 2022 quarter(PDF, 178 KB)

    Historical Reports 

    Labour Cost Index - March 2022 quarter(PDF, 174 KB)

    Find earlier LCI reports in the Publications Directory.

Pārongo ture taimahiInformation on employment legislation

Information on the Employment Relations Act 2000 and related legislation and on minimum employment rights in New Zealand can be accessed through the Ministry of Business, Innovation and Employment’s Employment New Zealand website. The site contains useful guides to key employment processes, including collective and individual bargaining and minimum holiday and other leave entitlements. This site also has a link to the employment law database where copies of decisions of the Employment Relations Authority and the Employment Court can be accessed.

Home — Employment New Zealand

Find the Employment Relations Act 2000 and all other New Zealand statutes on the New Zealand Legislation website.

Home — New Zealand Legislation