Federal public servants have been offered a 10.5 per cent pay rise over three years.

In a move that is likely to set the benchmark for other industries, the Australian Public Service Commission (APSC) has offered federal public servants a cumulative pay rise of 10.5 per cent over three years. 

This offer, the first in the current round of APS bargaining, was revealed by the Community and Public Sector Union (CPSU) and is higher than expected. 

The aim is to address the challenge of attracting and retaining talent as corporate wages surge ahead.

The CPSU has been pushing for a 20 per cent pay rise over three years, with 9 per cent in the first year, 6 per cent in the second year, and 5 per cent in the third year. 

In contrast, the government's offer is more evenly spread, with a front-loaded increase of 4 per cent in the first year, followed by 3.5 per cent in the second year and 3 per cent in the third year.

CPSU members now have until May 30 to vote on the issue. The union is expected to push for a higher pay rise. 

CPSU national secretary Melissa Donnelly says there is a need for a substantial increase to address the previous government's impact on the Australian Public Service (APS) and fulfil election promises of making APS a model employer.

The negotiations aim to conclude by July, allowing changes to be made to individual agency awards.