A pay boost is on the way for the lowest-paid APS workers. 

The Fair Work Commission has granted an early 5.75 per cent pay increase to Australia's lowest-paid public servants, the rank-and-file APS 1 employees. 

Currently earning as little as $24.25 per hour, these workers will see their wages rise to $25.64 per hour starting July 1. 

The decision also affects modern award minimum rates, which encompass the APS 1 band.

While not all agencies have APS 1 positions, those that do will need to comply with the new rates. 

These jobs primarily consist of entry-level positions in Indigenous and regional organisations, often occupied by women. 

As of December 2022, there were 2,009 APS 1 staff members, fewer in number than the 2,315 senior executive service band 1 officers.

The Australian Public Service Commission (APSC) bargaining data reveals that the median base salary for APS 1 employees currently stands at $52,792, a figure that will now increase by 5.75 per cent in accordance with the Fair Work decision.

The APSC initially proposed a 10.5 per cent pay raise over three years for public servants under bargaining. 

However, this offer was rejected by the Community and Public Sector Union. If the current Fair Work increase is combined with the government's opening bid, APS 1 employees will receive a guaranteed minimum increase of 16.25 per cent by the conclusion of bargaining.

To ensure compliance with the pay rises, the APSC issued a circular advising agencies to promptly pass on the increases as they take effect. 

Agencies must adhere to their obligations under the Fair Work Act 2009 to ensure correct employee compensation and avoid any potential underpayments.

Agencies are under pressure to update their payroll systems well in advance of the wage increase, as private sector organisations have faced criticism for historic underpayment issues. 

Instances such as the Queensland Health payroll system failure, which cost $1.2 billion, serve as cautionary examples. The Queensland Health payroll upgrade failure of 2010 resulted in a royal commission after it mistakenly underpaid or overpaid tens of thousands of health workers.

The Australian government aims to prevent a similar payroll scandal by urging agencies to ensure accurate payroll processes and avoid underpayments.

With different agencies using various payroll software systems, modifications must be made individually for each instance, adding to the complexity of implementing the pay increases.