Victoria's public sector wages cap must be scrapped so workers' pay packets can keep up with skyrocketing living costs, the Greens say.
The cap on annual wage increases for Victorian public sector workers was lowered from two per cent to 1.5 per cent from January 2022.
Most of the workers were already covered by enterprise agreements through to late 2023 and 2024, with yearly pay rises above two per cent, including nurses, police and public servants.
But with annual inflation soaring to 7.8 per cent, the Victorian Greens are calling for the wage cap to be ditched.
They argue it is cuts pay in real terms and signals to private companies that they can keep wages low for their workers.
"Victorian workers need higher wages to keep up with the rising cost-of-living. But it's the Victorian Labor government's policy to keep wages low," Greens MP Sam Hibbins said in a statement on Wednesday.
"We all said thanks to our hardworking essential workers during the COVID-19 pandemic, but now the government must demonstrate their thanks with higher wages to help Victorians keep up with the rising cost-of-living."
When handing down the budget last May, Treasurer Tim Pallas said the best time to review the state's wages policy was when agreements were up for renegotiation.
Budget papers showed Victoria's wages bill was forecast to hit $37 billion over this financial year before rising above $40 billion in another three years.
The Victorian government has been contacted for comment.
