RBA hiked rates then offered staff a pay rise that lags inflation
The RBA rejected inflation-matched pay, offering 9.5% over three years after staff rejected the earlier proposal.
Just hours after raising interest rates on Tuesday, Michele Bullock emailed staff asking them to vote on a pay offer that mirrors one 54 per cent rejected in July. The RBA has offered 9.5 per cent over three years, split as 3.7 per cent, then 3 per cent and 2.8 per cent.
Staff are requesting 11 per cent over three years or inflation-matched pay, whichever is higher. Prices rose 4 per cent in the year to August.
The RBA has rejected backpay and work-from-home protections, and no agreement was reached at the Fair Work Commission. Staff will vote between 15 and 19 October, days after the federal public service announces its pay decision.
- 9.5%
- RBA offer over three years
- 54%
- July rejection rate
- 4%
- Annual inflation to August
- 11% or inflation-matched
- Staff pay request
Why it mattersThe RBA warns that wage growth above inflation risks fuelling price rises, yet it is offering its own staff below-inflation pay, highlighting the tension at the heart of wage policy.
AustraliaSignals how Australia's central bank views wage growth during inflation, affecting broader debate about whether workers can fairly catch up to rising living costs.
✓ Claims checked against the source. checked 1 h ago
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