NSW public servants will have their wage increases cut in the November state 17 budget.

NSW Treasurer Dominic Perrottet has confirmed public sector wage increases will be cut from 2.5 per cent to 1.5 per cent in the state budget, which he says is in line with inflation forecasts.

It comes after the government sought to freeze the annual increase at 2.5 per cent earlier this year.

“We think that’s fair and reasonable,” the Treasurer told reporters on Tuesday.

NSW Labor Leader Jodi McKay said it was a slap in the face for 400,000 workers and an act of economic vandalism.

Shadow Treasurer Walt Secord said Mr Perrottet wanted government workers to foot the bill for  $13.5 billion in budget blow-outs and his $4 billion iCare bail-out.

Unions have condemned the decision.

“It’s an absolute betrayal of the essential workers who’ve kept NSW going during this pandemic and during this crisis,” NSW Secretary of the Australian Services Union Natalie Lang told the ABC.

The state government announced its intention to stop the annual 2.5 per cent wage increase for public servants in May.

The matter ended up before the industrial umpire after the government failed to get the freeze past the Upper House.

NSW Industrial Relations Commission upheld the wage freeze on October 1 but granted a ‘notional’ 0.3 per cent pay rise.