Bureau of Statistics figures released on Wednesday reveal Victoria now has the strongest combined public and private sector wage growth in the nation, with hourly rates of pay excluding bonuses up 2.6 per cent over the year to September.

But the strong result was driven entirely by public sector wage growth. Hourly rates of pay for Victoria-based public servants leapt by 3.8 per cent over the year. It was the strongest annual result for Victoria since September 2009, and well above the national average of 2.7 per cent.

Only Western Australia – where the state government has been forced to compete with the past mining boom for workers – recorded stronger public sector wage growth, with a 4 per cent increase over the year. In contrast, Victoria's private sector wages grew by a relatively modest 2.3 per cent.

The strong result comes before even factoring in union pay agreements, with police, health workers, public servants, firefighters, nurses and teachers limbering up for looming pay battles this year and next.

Most recently the union representing Victoria's 30,000 public servants asked the Andrews government for a 20 per cent pay rise over four years, five weeks leave and automatic salary progression.

The state budget already appears to be under pressure over wages. A final tally of the 2014-15 financial year reveals the actual 2014-15 public sector wage bill was a whopping $357 million higher than expected.

The Department of Treasury report shows public sector wages cost more than $19.8 billion during the year, up $804 million on the previous year. Treasury said the higher than anticipated bill was due to higher staff costs from hospitals, police and jails, as well as ordinary salary growth.

CPSU state secretary Karen Batt said if the community wanted quality services and to deal with strong population growth the government needed to attract the best people. Other public sector unions have warned they will use a recent generous deal for paramedics as an industrial template.

Shadow treasurer Michael O'Brien accused Premier Daniel Andrews of hitting taxpayers with much high public sector wages to "pay off his friends in the union movement". "The Coalition has no objection to better pay for better work, but this is simply higher pay for no better work," Mr O'Brien said.

Labor has suggested its wages policy remains unchanged from previous governments. That means any annual increases above 2.5 per cent should be offset by productivity or service delivery improvements, although how this applies in reality is unclear.