Public servants will receive a 10.25 per cent pay rise over two-and-a-half years after an agreement was struck between unions and the Government.

Minister for Public Expenditure Paschal Donohoe welcomed the proposed public pay agreement reached at the Workplace Relations Commission (WRC). It will see a local bargaining mechanism of 1 per cent added to 9.25 per cent pay increases.

The agreement will cost €3.6 billion spread over four years — 2024, 2025, 2026 and 2027.

The deal also provides for a local bargaining process. This mechanism will provide an avenue by which employers and grades, groups and categories of public servants can address issues involving changes in structures, work practices or other conditions. Those on the lowest incomes will receive up to 17.3% over the lifetime of the agreement.

Public servants will see pay rises of 2.25 per cent or €1,125, whichever is greater, from January 1st this year, with another 1 per cent on June 1st and another 1 per cent on October 1st.

This will be followed by 2 per cent in March next year, 1 per cent in August 2025 and 1 per cent in each of February and June 2026.

Mr Donohoe said he “recognises that the commitment, flexibility and agility of our highly skilled public servants is fundamental to the delivery of quality public services”.

“I believe that this agreement will provide certainty and stability for public servants as well as the Government and public service users over the coming years.

“I have always been clear that I wanted to reach an agreement that was both affordable and fair and I believe both of these objectives have been achieved.

“Continued reform of our public services remains a key priority for Government and this is reflected in the agreement, which builds on the achievements that have been made in every facet of the public service in recent years. I acknowledge the positive engagement by the unions and staff associations in this regard.

“I will now take this proposed agreement to Government for approval and I hope the proposals will be endorsed by public service unions and associations in the ballots that will follow.”