The Minns government is offering more than 400,000 public sector workers a three-year pay rise worth 10.5 per cent, well short of the demands some unions are making.

The offer, to be announced on Monday, applies to workers whose industrial agreements are due for renewal, including nurses, allied health workers, firefighters, prison guards, community case workers and Service NSW employees.

Paramedics are excluded from the deal after they were given historic pay rises last year.

The government is offering a 4 per cent pay rise in the first year, 3.5 per cent in the second and 3 per cent in the third, including a superannuation increase.

Workers will also receive a $1,000 cost of living payment if inflation exceeds 4.5 per cent that year.

The government has now sent its offer to unions, some of which are likely to be unimpressed.

‘Creates a new, fair framework’

The Fire Brigade Employees Union (FBEU) is currently seeking a 20 per cent pay rise for its members over three years.

The Nurses and Midwives’ Association is seeking a 15 per cent pay rise in 2024, plus superannuation, while the Police Association wants 25 per cent over four years.

After winning the election last year, Labor scrapped the previous government’s wages cap, paving the way for big rises for some workers including paramedics and teachers.

The government says the new 10.5 per cent offer is a starting point and it hopes to negotiate “productivity reforms” with unions “in exchange for further pay increases”.

Treasurer Daniel Mookhey said the offer would outpace forecast inflation.

“This is about giving certainty for hard-working families across NSW, with a three-year offer to see pay and conditions improve,” Mr Mookhey said.

“It creates a new, fair framework that can deliver a better outcome for everyone.”

The pay offer doesn’t apply to MPs, public officials, or senior executives, who have all had their pay frozen.