As Premier, Lara Giddings struck a three-year wage agreement with public sector unions earlier this year which included a pay rise of at least 2 per cent every 12 months.
Photo: Tasmanian Treasurer Peter Gutwein has proposed a wage freeze to save 500 jobs.
In April, the Government warned it may need to cut 1,500 public sector jobs to balance the budget.
The State Government is considering the introduction of a wage freeze for all public servants.
Read more here: ABC