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News from Norfolk Island

READ about the Norfolk Island Cost of Living Adjustment below.

Image from Google Images

Image from Google Images


About Norfolk Island

  • An Australian external territory
  • It’s self-governed, with a nine-member parliament
  • Population is 1700
  • Public Service is about 170 people
  • Most public service salaries are low: between $25-36,000

The law

Under the Public Sector Remuneration Tribunal Act 1992, the tribunal is required to consider the following four criteria:

  • The public interest
  • Economic conditions in the Norfolk Island Community
  • Concepts of equity and fairness that apply in the Norfolk Island community; and
  • Such other matters as are, in the opinion of the Tribunal, relevant to the proper performance of its functions.

The wages application

The NI PSA lodged an application to increase wages in November last year. The matter was delayed for several months and was heard on Monday July 15.

The claim emphasised the inflationary pressures on the island, seeking an increase of 3%,  as well as a flat rate $10 per week to compensate the removal of an employment condition that gave employees one airfare to mainland Australia every two years. The NI PSA argued that the cost of living on the island had significantly increased. The Administration arguing that it was incapable of paying public servants any more.  

It’s interesting to note that the administration is required by law to publish inflation on the island every quarter – and this has not been done since 2009. Because of this, the NI PSA used anecdotal examples for its argument that demonstrated the increase in the cost of living.

What’s next?

Both parties are to tender supplementary submissions in August, with a decision expected in September.

The SPSF will seek to provide ongoing to support to the Norfolk Island PSA after the SPSF provided assistance to the NI PSA on this wage matter.

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