Interstate pay deals could be used to guide future NSW public sector wage agreements as the state faces an exodus of essential workers seeking better conditions.
Two industrial relations experts have been asked by the state government whether "workforce sustainability" and retention issues should be considered by the industrial umpire.
The Health Services Union has warned workers are fleeing to Queensland, the ACT and Victoria because the pay is significantly better and housing cheaper.
The Sunshine State is offering interstate paramedics up to $20,000 in a sign-on bonus, while Victorian nurse unit managers have this year been earning $1.50 per hour more than their NSW counterparts.
The terms of reference handed to the task force emphasise the state's shortfall of essential workers will worsen by 2025 without a concerted effort to stem the outflow.
The review, led by former Fair Work Commission deputy president Anna Booth and another former industrial commissioner, will also try to find how NSW can deliver real wage growth over the long-term through productivity improvements.
"This should be considerate of state finances while supporting efficient and effective service delivery," the guiding document said.
But the state government has been warned it could spark a bidding war for talent.
"This will create a wage spiral, add to inflation and it's something the government should be avoiding," Opposition leader Mark Speakman said.
"But instead it means they intend to be entering a bidding war with other states."
At a cost of $618 million, public sector workers have been offered a four per cent wage rise for the current financial year, above the previous government's 2.5 per cent wages cap.
Some health workers including cleaners and clerks have been offered a flat $3500 rise instead of a percentage increase.
That tweak won't increase the overall bill, the government says.
Premier Chris Minns on Tuesday said he wanted experienced workers to have long careers in the NSW health system, "rather than up and leaving" for the private sector or Queensland.
The task force will report to cabinet by the end of the year.
