A new wages ruling for public sector nurses and midwives in New South Wales has drawn a mixed response, with unions welcoming the increases while warning the outcome may fall short of addressing deeper issues across the health system.
The NSW Industrial Relations Commission has handed down a three year deal beginning in July 2025, awarding a 16 per cent increase for registered nurses and midwives, including a 10 per cent rise in the first year followed by smaller increments. Enrolled nurses are set to receive an 18 per cent increase over the same period, while assistants in nursing and midwifery will see a 28 per cent rise, with the largest portion delivered upfront.
Union leaders have described the decision as a milestone in terms of headline figures, particularly for lower paid roles that have long argued their work has been undervalued. At the same time, they argue the increases for registered nurses and midwives do not go far enough to address longstanding concerns around pay equity and workforce retention.
The NSW Nurses and Midwives’ Association, which brought forward a large scale wage case supported by extensive evidence, said the outcome reflects the limits of arbitration rather than the strength of the case presented. While the commission acknowledged the essential role of nurses and midwives and the history of undervaluation in the profession, it also weighed broader economic conditions in reaching its decision.
Concerns remain about whether the pay rise will ease pressure on a workforce already facing staffing shortages and rising living costs. Union representatives have warned that without stronger incentives, experienced staff may continue to leave the public system, making it harder to recruit and retain workers in the years ahead.
The ruling has also drawn political reaction. The state government has pointed to the scale of the increases as evidence of progress on wages, while critics argue the process exposed gaps in planning and financial management. Opposition figures have raised concerns about how the increases will be funded, warning that health services or infrastructure projects could face pressure if costs are not managed carefully.
Questions around the broader budget impact have not been fully settled. Submissions during the case highlighted the potential strain on state finances, including the possibility of increased borrowing or effects on the state’s credit position. Government ministers have yet to provide detailed assurances on how the costs will be absorbed without affecting service delivery.
For patients and communities, the debate carries practical implications. Workforce shortages can translate into longer wait times and reduced access to care, particularly in regional areas where staffing challenges are often more acute. Any improvement in pay that helps stabilise the workforce may offer indirect benefits, though the extent of that impact remains uncertain.
The decision follows years of tension over public sector wages in New South Wales, including earlier caps that unions say reduced real earnings over time. The return to arbitration has provided a pathway to revisit those settings, though it has also highlighted the balancing act between fair pay and fiscal limits.
For many nurses and midwives, the pay rise offers some immediate relief. Whether it leads to lasting change in working conditions and staffing levels is likely to depend on what comes next, both in policy decisions and future negotiations.
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