WA pay offer to cost taxpayers $3.3b

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Western Australia's premier is urging public servants to end a protracted pay dispute and accept a deal that would cost taxpayers more than $3 billion.

The state government has been forced to again lift its offer to more than 150,000 people after health workers threatened further industrial action.

Workers who earn less than $104,000 a year would receive an additional $3120 in each of the next two years, as well as an immediate $3000 bonus payment.

The offer represents an increase of between three and six per cent for those workers.

Workers on more than $104,000 would also receive the bonus, in addition to a three per cent increase across each year.

The new offer, tabled by the McGowan government last week, was initially welcomed by unions representing some of the state's lowest-paid workers.

But the Australian Nursing Federation has indicated it will reject the deal and proceed with a mass gathering of members in Perth next month.

Unions representing police officers, prison guards and firefighters have also voiced opposition.

Premier Mark McGowan on Tuesday revealed the revised offer would cost $3.3b compared to the policy over the previous four years of capping annual wage increases at $1000 per worker.

"We're pretty keen to make this the final offer. Obviously we'll continue to talk," he told reporters.

"This pay deal is very generous, it ensures those people who need it most get the best reward and it provides a sign-on bonus of $3000.

"Not many people across Australia or in the private sector workforce are being offered this. So all I'd say is I think this is a good deal and the workforce should take it."

Unions WA secretary Owen Whittle last week said the improved offer was welcome but the process that led to it was "severely flawed".

"Unions are fighting for a return to genuine bargaining in the public sector. This cannot be achieved with an arbitrary and binding wages policy," he said.

WA's Labor government initially offered a 2.75 per cent increase, but in July raised the offer to three per cent, along with an additional $2500 sign-on bonus.

Unions have sought a five per cent increase to combat rising inflation and cost-of-living pressures.

Thousands of public sector workers rallied outside parliament in August in an escalation of the stand off.