Thousands of public service workers, ranging from school support officers and park rangers to prison officers and ServiceNSW workers are holding a 24 hour strike today to campaign for a 5.4 per cent pay rise.

The Public Service Association has given an ultimatum to the NSW state government, demanding the full amount after Premier Dominic Perrottet announced a 2.5 per cent annual cap on wage rises.

That cap would be increased to three per cent next financial year, and an additional 3.5 per cent following - depending on productivity.

Demonstrations are being held around the state, with thousands rallying in Sydney outside the NSW parliament in Sydney. Similar demonstrations are also being held in Bathurst, Newcastle, Dubbo, Grafton, Tamworth and Wagga Wagga.

With inflation set at a shocking 5.1 per cent, PSA general secretary Stewart Little said the offer was a pay cut.

"This offer is pure politics - moving half a per cent and playing silly games with one-off bonuses for certain workers," Mr Little said.

"If the Premier is going to insist that workers deserve a pay cut he's going to meet fierce resistance."

The state government has promised a one-off $3000 payment to permanent NSW Health workers as a thank-you for their work during the pandemic. Some critiqued the offer as pitting workers against each other through the omission of bonuses for other key industries.

While Griffith and Leeton didn't have their own rallies to attend, services will be affected as workers traveled to Wagga in solidarity.

ServiceNSW encouraged customers to complete any transactions online rather than attend the centre in person.

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