Psychiatrist Salary NSW: 2026 Pay Rise, Allowances & Job Outlook
The psychiatrist salary in NSW has undergone a significant shift following a newly approved temporary 20% total uplift for public-sector consultant psychiatrists. This 12-month temporary increase (October 2025 - October 2026) has major implications for workforce planning, recruitment, locum demand, rural mental-health access, and long-term career decisions.
Critical Update: The 20% pay increase is a
temporary 12-month measure expiring in October 2026. Future salary arrangements beyond this period have not been confirmed.
Source: ABC News
This in-depth guide breaks down what's changing, who benefits, how this affects permanent and locum psychiatrists, and what candidates should consider when evaluating roles in New South Wales.
Overview of the 2025 Psychiatrist Pay Increase in NSW
In October 2025, the NSW Industrial Relations Commission introduced a new 10% Attraction & Retention Allowance, applied on top of the existing 10% Abnormal Work Allowance. Together, this results in an effective 20% uplift for public-sector Staff Specialists and Senior Staff Specialists in Psychiatry.
This decision comes amid:
Ongoing workforce shortages- High vacancy rates in metropolitan & rural settings
- Heavy reliance on locums
- Growing demand for inpatient and community mental-health services
Important: This uplift currently applies only to consultant-level psychiatrists, not to trainees or registrars.
Current Psychiatrist Salary Bands in NSW
Below are the verified salary ranges for Staff Specialist Psychiatrists in NSW. Base salaries range from $186,241 to $354,479 depending on classification level, with the 20% allowances and additional benefits providing total remuneration packages significantly higher.
Note: Approximately 51% of NSW psychiatrists are at Senior Level 1 (earning up to $438k maximum), while 48% are on non-Senior grades earning less.
NSW Hospital Psychiatry Salary Bands
| Position Level | Base Salary | With 20% Allowances | Total Package* | Notes |
|---|---|---|---|---|
| Staff Specialist (Year 1) | ~$186,241 | ~$223,489 | ~$270,000-$290,000 | Entry level (~48% of psychiatrists) |
| Staff Specialist (Year 5+) | ~$251,618 | ~$301,942 | ~$370,000-$400,000 | Higher experience bracket |
| Senior Staff Specialist | ~$354,479 | ~$425,375 | up to 438,000 | Maximum for ~51% of psychiatrists |
*Total Package includes: Base salary + 20% allowances (10% Abnormal Duties + 10% Attraction & Retention) + 11.5% superannuation + 17.5% leave loading + Professional Development Allowance (up to $38,000 cap for training/education).
Important Notes:
- The $438,000 figure represents the MAXIMUM package for Senior Level 1 psychiatrists (about 51% of all psychiatrists), not an average salary
- The actual full-time average across all psychiatrists is $388k-$422k (or $350k-$384k excluding professional development allowance)
- Many psychiatrists work part-time, with only 65% working full-time equivalent hours
- The 20% allowances are temporary (October 2025 - October 2026)
- Professional Development Allowance is capped funding for training, not guaranteed take-home pay
- Exact total packages vary by step, location, and contract type
How the New Allowances Work
A. Abnormal Work Allowance (Existing 10%)
This allowance acknowledges the complexity and intensity of mental-health work.
B. Attraction and Retention Allowance (New 10%)
Introduced to improve:
- Recruitment of psychiatrists
- Retention of experienced clinicians
- Service stability across NSW Health districts
C. Combined Impact
Psychiatrists now receive base pay + 20% applied to their remuneration package.
This makes NSW one of the
highest-paying states for consultant psychiatrists.
Locum Psychiatrist Rates in NSW
Locum demand in Psychiatry remains strong, especially for:
- Acute inpatient units
- Community mental health
- CAMHS
- Rural & remote rotations
Typical NSW Locum Psychiatry Rates
New Paragraph
| Role Type | Daily Rate | Why Rates Stay High |
|---|---|---|
| General Adult | $2,750–$3,050/day | High demand in metro & rural |
| Child & Adolescent (CAMHS) | $2,800–$3,050/day | Limited specialist pool |
| Old Age Psychiatry | $2,750–$3,050/day | Workforce gaps |
| Inpatient Psychiatry | $2,750–$3,050/day | Complexity + roster needs |
Note: NSW government has capped locum psychiatrist rates at $3,050 per day.
Even with permanent salaries rising, locum rates have not decreased—if anything, competition across states is keeping them strong.
Impact in Rural & Remote NSW
Rural areas like:
- Western NSW
- Murrumbidgee
- Far West LHD
- Hunter New England (some regions)
continue to face the deepest shortages.
The pay rise is expected to:
- Reduce vacancy durations
- Improve inpatient service stability
- Lower burnout in understaffed units
- Reduce dependence on long-term locums
However, rural psychiatry roles still report challenges:
- High patient loads
- Limited multidisciplinary support
- Need for outreach + community integration
- Limited CAMHS coverage in many regions
Why the Pay Rise Was Introduced (Workforce Analysis)
The NSW Industrial Relations Commission acknowledged critical workforce issues:
- High turnover
- Increasing resignations
- Psychiatrist-to-population ratio deficits
- Unsafe workloads in some units
- Over-reliance on costly locum coverage
The decision recognised psychiatry as a shortage specialty requiring urgent intervention.
System factors highlighted:
- Growing mental-health admissions
- Statewide community service pressure
- Difficulty attracting psychiatrists to public psychiatry roles
- Competitive salaries from private sector & other states
Should You Consider Working in NSW as a Psychiatrist?
Pros
- Strong demand for all subspecialties
- Opportunities to build combined public + private work
- Locum flexibility around permanent contracts
- Improved retention incentives
Cons
- Uplift currently applies only to consultant-level roles
- Workforce pressure remains high in many districts
- Vacancy reliance still affects service stability
- Community mental-health teams remain overstretched
Best suited for psychiatrists who:
- Want strong remuneration
- Prefer stable, long-term hospital roles
- Are open to metro, regional, or rural placements
- Value relocation & lifestyle flexibility
How CC Medical Supports Psychiatrists
CC Medical has more than
30 years of experience placing psychiatrists across Australia.
We assist with:
- Permanent and locum job opportunities
- Salary negotiation
- Visa & AHPRA guidance for overseas psychiatrists
- Rural NSW opportunities with incentives
- Rotations that align with your subspecialty
- Travel and compliance support (for locums)
FAQs
1. What is the new psychiatrist salary in NSW?
Staff Specialists have a base salary starting at $186,241 progressing to $354,479 for Senior Level 1. With the temporary 20% allowances and additional benefits (superannuation, leave loading, professional development allowance), total remuneration packages range from approximately $270,000 to a maximum of $438,000 for Senior Level 1 psychiatrists.
Important: $438,000 is the maximum, not the average. About 51% of psychiatrists are at Senior Level 1, while 48% earn less. The actual full-time average across all psychiatrists is $388k-$422k (including professional development allowance) or $350k-$384k (excluding it).
2. Does the pay rise apply to trainees?
No — the 20% uplift applies only to Staff Specialists and Senior Staff Specialists, not to trainees or registrars.
3. Are locum rates going down because of the pay rise?
Not currently. Demand remains high, so locum rates remain strong at $2,750-$3,050 per day (capped by NSW government at $3,050/day).
4. Are private psychiatrists affected?
No — the ruling applies to public-sector employees.
5. Does the allowance apply to part-time psychiatrists?
Yes, on a pro-rata basis.
6. Is $438,000 the average psychiatrist salary in NSW?
No — $438,000 is the MAXIMUM, not the average. This figure applies to Senior Level 1 psychiatrists (about 51% of all psychiatrists) working full-time. Nearly half of psychiatrists (48%) are on non-Senior grades earning between $262k-$354k in base salary. The actual
full-time average across all psychiatrists is
$388k-$422k (with professional development allowance) or
$350k-$384k (without it). When adjusted for part-time workers (35% of psychiatrists work less than full-time), the system-wide average is significantly lower at $265k-$287k total remuneration.
The temporary 20% pay uplift for NSW psychiatrists represents a significant, though time-limited, improvement in remuneration. During the 12-month period (October 2025 - October 2026), NSW offers some of Australia's most competitive psychiatrist salaries, with total packages reaching a maximum of $438,000 for Senior Level 1 specialists (about 51% of psychiatrists), while the full-time average across all psychiatrists is $388k-$422k.
Important Considerations:
This uplift is temporary and expires in October 2026- Future salary arrangements beyond this period remain uncertain
- Locum rates remain strong at $2,750-$3,050/day
- Workforce challenges persist despite the pay increase
For psychiatrists considering a move — whether locum or permanent — the current 12-month window presents enhanced remuneration opportunities, though long-term candidates should stay informed about post-October 2026 arrangements.
Contact CC Medical
to discuss current psychiatry roles and tailored placements across NSW.
