€1.2 billion for public sector pay deal

Funding of €1.2 billion has been allocated in the Budget for a public sector pay deal.

The money will be used to address all elements of both the last public service agreement which expired at the end of June, and any successor pay deal in 2027.

"This includes the cost of any associated pension impacts," according to the Department of Public Expenditure.

Since last week, workers across the public sector have been engaging in industrial action in the form of a work-to-rule ahead of planned strikes on 14 October and 21 October.

Unions have accused the Government of failing to make meaningful commitments on pay following the expiration of the last public sector agreement.

In his Budget speech, Minister for Public Expenditure Jack Chambers made reference to the current industrial action and said every effort should be made to avoid further disruption.

"I have made significant provision in today's Budget package for public service pay," Mr Chambers said.

"This demonstrates my seriousness, and indeed the seriousness of Government, in our desire to reach a new agreement that responds to the issues that have been raised."

"I would now call on ICTU and other associations to match this intent by re-engaging as a matter of urgency and standing down the ongoing industrial action," he added.

The minister also announced changes to the minimum wage, which he said would see a single person with a net income of €26,000 will see a 5% increase in their income next year because of the increase in the minimum wage.