PM Is Right To Be Surprised – Real Pay Data, Not Job Ads, Shows Public Service Pay Up 1.3%, Inflation 4.1% – PSA

The Prime Minister was right to be surprised by claims public servants are getting 10% pay rises – because they aren’t. Official figures show public service pay rose just 1.3 percent in the year to June, while prices rose 4.1 percent.

Christopher Luxon was caught out on Newstalk ZB this morning when Mike Hosking put the SEEK Advertised Salary Index to him, showing government advertised salaries up 10 percent in the past year.

“We’re surprised too. If public service workers had a 10 percent rise in the past year, they wouldn’t be going on strike,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

“Ten thousand workers from MBIE, MSD, DIA and other agencies walked off the job on 9 September because the Government’s offers are well below the rate of inflation. Workers at Corrections have also rejected their pay offer. A 10 percent rise would more than fix that. It just isn’t real.”

SEEK measures what employers advertise for new roles, not what public servants are actually paid. It doesn’t publish the data behind its index, so nobody can say what is driving the number. It could well be advertised jobs for senior managers and specialists.

“This data tells you nothing about the pay packets of the people who process benefits, support exporters and keep civil defence running.”

The official data does. The Labour Cost Index analysis from the Public Service Commission shows:

– Public service pay rose 1.3 percent in the year to June 2026

– Public sector pay rose 1.7 percent

– Private sector pay rose 2.0 percent

Even SEEK’s own figures show advertised pay across all jobs rising 2.6 percent, well short of inflation. Wellington, where much of the public service is based, had the weakest annual growth of any region.

Motu Economic and Public Policy Research reported in July that public sector base salaries are on average 4 percent lower than comparable private sector jobs. The gap widens when total remuneration is counted, particularly for men and for larger roles.

“What’s telling is the Prime Minister’s first reaction: that a rise like that ‘shouldn’t be happening’. Workers going backwards on their pay deserve better than a government whose instinct is that public service pay rises are a problem,” said Fitzsimons.

“And with the PM promising ‘radical structural change’ for the public sector if elected to a second term, these workers can see what is coming: more cuts, more pressure, and pay that doesn’t keep up with the cost of living.

“Public servants are doing it tough. It’s time the Government did the right thing and paid them fairly.”

Notes:

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.