Treasurer Peter Gutwein on Thursday announced its new deal would see public servants paid 2 per cent for the first year of a new agreement, 2.25 per cent in the second year, and 2.5 per cent in the third year.

He said this offer relied upon the public service finding savings efficiencies such as a reduction on paid overtime and assurances salary progression was performance-based.

Mr Gutwein said the government wanted the public sector to implement a Workforce Renewal Incentive Program to attract new staff on lower salaries.

The offer came a day after the government missed a promised deadline on a deal.

The offer was sent to unions briefly before a press conference with the Health and Community Services Union, Community and Public Sector Union, United Voice, United Firefighters Union, Australian Education Union and the Australian Nurses and Midwifery Union.

Labor's workplace relations spokeswoman Michelle O'Byrne said the revised offer still meant workers were taking a pay-cut in real terms against inflation rates.

"He’s also unfairly asking workers to trade off conditions to get the wage increase and sending an appalling message to the private sector," she said.

CPSU general secretary Tom Lynch said the offer was below the 3 per cent sought by unions and did not expect members would accept the deal.

"It's rude and insulting," he said.

"It's still a wage-cut in real terms with a loss of conditions."

Australian Education Union spokeswoman Roz Madsen said the recent play by the government added more uncertainty to negotiations.

"We suddenly have a shopping list of demands without the detail necessary for unions to properly consider it," she said.