A pay agreement that the NSW government reached on 30 October will go towards salary packaging for more than 50,000 health workers and benefit small communities, according to the Health Services Union (HSU).

The agreement includes 100 percent salary packaging back-dated to 1 July. 

HSU Secretary Gerard Hayes said that the pay agreement will help attract staff into the healthcare sector. "One of the issues over the past 12 years with minimum wage increases was it was hard to attract and retain staff," Mr Hayes said. 

As part of the Government's new Fair Pay and Bargaining Policy, the NSW Government and the HSU agreed to a one-year pay increase of 3.5 percent plus 0.5 percent in superannuation. 

For someone on $60,000 or $70,000 salary this can be a big bump, Mr Hayes said. 

"What this means is that people are able to spend money in small towns. They'll be able to support the community because their wages have enhanced.

“This is a generational advance for 50,000 health workers who have earned every cent of this pay rise. The reform to salary packaging will be life-changing for hard-working people on modest incomes,

 Mr Hayes said. 

 HSU Secretary Gerard Hayes and Minister for Industrial Relations Sohpie Cotsis unveil pay agreement. Photo: Gerard Hayes HSU Secretary Facebook

The pay agreement includes Aboriginal healthcare workers, dental officers, psychologists, security officers, patient support assistants, hospital cleaners, cooks, technicians, interpreters, and administration staff. 

Although bed closures are more of an issue in metropolitan areas, Mr Hayes said the salary packaging will ensure that health centres everywhere can provide their patients with suitable care. 

The wage increase over the past two years gave the healthcare workers' salaries a sustainable boost. 

Last year healthcare workers got a 6.5 percent increase and another 3.5 percent with the current agreement; including salary packaging that amounts to around a 14 percent pay increase over the past two years. 

“We were elected on a mandate to fix the recruitment and retention crisis in essential services and that is what we are doing," Minister for Industrial Relations Sophie Cotsis said. 

“After years of neglect in a struggling workforce, we demanded the government do better and secured a deal that finally recognises health workers. We pay tribute to the Government for honouring its commitment," Mr Hayes said.