MORE than 3000 public servants are set to pocket a lucrative taxpayer-funded golden handshake of up to 90 weeks' pay under controversial State Government cuts.

In a deal described as "very generous", staff with little more than a year's work in the public sector will qualify for the base payout of 30 weeks' wages, or an average of at least $35,000.



The plan is expected to cost $250 million and has been classified as a "voluntary separation program", reported The Courier-Mail.

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But the Opposition yesterday accused the Bligh Government of squandering taxpayer money by not officially classing it as a redundancy program, which would have meant workers were paid less upfront but eligible for $100 million in concessions from the Australian Taxation Office.



It said the Government was using clever wording in a bid to hide job cuts.

During the last election, Labor rallied against former LNP leader Lawrence Springborg's plan to implement a hiring freeze aimed at saving up to $1 billion.

"Anna Bligh was promising jobs, not cuts, but in fact delivering, as we now see, cuts not jobs," shadow treasurer Tim Nicholls said yesterday.

The Government confirmed the base payments had been "substantially increased" compared with previous schemes.

Acting Treasurer Rachel Nolan said the scheme offered "greater operational flexibility" and the extra cash would ensure workers were not disadvantaged by the lack of tax breaks.

About 3500 people would be made redundant over three years but because their positions would continue to exist, the program did not amount to a redundancy scheme, she said.

The Government expects to save $175 million in wages a year.

Queensland Public Sector Union secretary Alex Scott, who labelled the cuts a real concern, said the state needed more public service jobs.

"Problems with unreasonable and excessive hours of work, as well as duties of position, rank in the top 20 reasons why many of our members request union representation," he said.

Mr Nicholls said the last redundancy program gave eight weeks' pay, plus two weeks for every year worked.

The new package offers a payment of 30 weeks' wages plus three weeks' pay for each completed year of service, up to a maximum 60 weeks.

An average wage earner could walk away with $100,000. Only workers employed before January 2010 are eligible.

"The taxpayer is paying again for a lack of forward planning," Mr Nicholls said.

Treasury is still developing its terms and conditions but expects applications will open "very soon".

The package was described by a private sector employer group as "very generous", but a step in the right direction.

"In the private sector they would be running for the door. You wouldn't have any problem filling it," Chamber of Commerce and Industry Queensland president David Goodwin said.