Public servants to get higher pay rise

The federal government has agreed to increase the cap on pay rise offers to public servants from 1.5 to 2 per cent a year.

Michaelia Cash (AAP) Source: AAP

Federal government departments will be able to offer public servants a bigger pay rise, after the new employment minister agreed to increase a cap.

They will be able to offer wage increases averaging up to two per cent instead of 1.5 per cent, under changes to the enterprise bargaining framework.

But the cost will still have to be met within existing departmental budgets, Michaelia Cash said in a statement on Wednesday.