Public service pay has been governed by a system of collective agreements for many years. These multi-annual agreements have contributed to ongoing stability in our economy by facilitating the delivery of quality public services, the maintenance of industrial peace in the public service, and ongoing reforms, whilst also allowing for the sustainable management of pay costs to the exchequer.
The current agreement, the Public Service Agreement (PSA) 2024 – 2026 is a two and half year agreement. The Agreement provides for 9.25% in general pay increases as well as a provision for a Local Bargaining mechanism equivalent to 1% of the basic pay cost. This agreement expires at the end of June 2026.
In that context, my officials met with ICTU and staff representative associations to commence exploratory discussions on a successor agreement last week and these ongoing discussions remain in their early stages. My officials are available for intensive engagement over the coming weeks with a view to reaching a successor agreement.
The Government would like to reach a new agreement. However, these will be challenging discussions and there are limits to what is possible and sustainable given the competing demands that this Government faces.
Recent agreements have provided certainty and stability for public servants and for Government. They have succeeded in ensuring that Public Service pay remained broadly in line with inflation and, in the case of pay for lower paid groups, significantly ahead. The most recent pay increase for public servants was on the 1st of June last.
As the deputy will appreciate, given the confidential nature of this process, it would not be appropriate for me to comment further at this time.