The NSW Government will establish a $3.6 billion fund to pay for wages growth for front line public sector workers.

The Essential Services Fund (ESF) covering wage rises for workers including nurses, paramedics, health workers, police, firefighters, prison officers, teachers and child protection workers will commence from 2024.

It’s the latest measure introduced by the state government to retain and recruit frontline workers, and comes after the government did away with the public sector wages cap, implemented a two-year salary freeze for senior executives and  gave the state’s public servants a 4 per cent pay rise.

The government has also offered teachers a pay deal which will see the starting salary for a NSW teacher increase to $85,000 and the salary for a top of the scale teacher go up to $122,100.

Treasurer Daniel Mookey, who will hand down the NSW budget on Tuesday, said public servants who keep the state’s  hospitals, schools, parks and services running deserve real wages growth.

 “The Essential Services Fund will give them certainty and help bolster their ranks to ensure essential services workers are supported to deliver the best outcome for the people of New South Wales,” he said.

He told reporters details of where the money will come from will be detailed in the Budget.