NSW Treasurer Mike Baird says up to 8000 public sector jobs could be on the chopping block if Labor succeeds in forcing the government to pay superannuation increases on top of pay rises.
The government wants a compulsory 0.25 per cent super increase to be absorbed in pay rises, but Labor is determined to prevent this in the upper house.
Labor was jeopardising the finance of the state, Mr Baird told reporters in Sydney on Thursday.
"I would call on crossbenchers and the Labor Party to be fiscally responsible," he said.
"In effect what they're saying is 'well don't worry about trying to get back to surplus, throw it away, go further into deficit'."
The government was just trying to live within its own means, he said.
"The other alternative is up to 8000 jobs come out of the public sector."
In June the government was accused of re-writing the rule book by saying it would change a public sector wages policy regulation so the superannuation increase became part of public sector pay rises, which are capped at 2.5 per cent.
It came after the Industrial Relations Commission ruled public servants could get the compulsory super increases in addition to pay rises.
On Thursday the opposition said it would introduce a motion to disallow the new regulation when parliament resumes.
"This decision has effectively cut the wages of over 300,000 workers in NSW who are now paying for their own superannuation increases," opposition industrial relations spokesman Adam Searle said.
The original wages cap regulation clearly stated superannuation was a guaranteed condition and not part of the cap, Mr Searle said.
"This is a mean and tricky manoeuvre allowing the O'Farrell government to put its hand into the pockets of every hardworking nurse, teacher, firefighter, police and public sector worker across the State," he said.
From July compulsory employer super contributions rose from nine per cent to 9.25 per cent.
