Why is the public sector average pay increassing?

Assets Model

With a recruitment embargo I can't see how the public sector pay bill is increasing? Surely there are more leaving now than coming in and if it is people at the top leaving presumably how come the wage bill isn't decreasing?

I_am_Jebus

reductions in numbers is certainly happening. No recruitment means natural wastage (retirements) etc... incentivised early retirements and career breaks. Those leaving in such circumstances are not being replaced but it takes time for the overall effect to show. Its not like an over night reduction etc...

Time Magazine

People get yearly increases as they move up the ladder in the public service. If there aren't people coming in at the bottom of the scale, then the average will rise.

Assets Model

But would the natural wastage not even that out?

Time Magazine

Assets Model wrote: »

But would the natural wastage not even that out?

Seemingly not.

rainbowtrout

Assets Model wrote: »

But would the natural wastage not even that out?

No, take a simple example. 10 people working in public service each on a different rung of the payscale between 1 and 10. Bottom of the payscale is on 10K, and each one after is 10K higher so highest is on 100k. Total Pay: 550K. Average wage for 10 people is 55K. Person on top of scale retires is not replaced and everyone moves up a notch on the scale. So now there are 9 people earning between 20k and 100K. Total : 540K Average is now 60K, so it appears that people are earning more.

Hasschu

The simple answer is irresponsible government. With bankruptcy staring the country in the face the gov't does not have the courage to impose a wage freeze on public servants. That means no incremental increases, no bargained increases, no increases whatsoever. The rot continues with no end in sight.