Public sector pay talks will hang in the balance for another five weeks as unions debate whether to accept a 6.5% increase, following marathon talks at the Workplace Relations Commission (WRC).

The €2.7billion package for incremental increases over the next two years came about following 19 hours of discussions that began on Monday.

The Public Sector Committee (PSC) of the Irish Congress of Trade Unions (ICTU) has now advised unions to suspend the planned balloting for industrial action - which had been scheduled for September - so that they can consult with their members on the WRC proposal.

The PSC is set to meet again on October 7 to decide on whether to accept the proposal, but this will come too late for the Budget which the Government plans to unveil at the end of September.

Unions are waiting to see what cost-of-living measures will be offered in the Budget before committing to the deal.

In Association with

Speaking yesterday, Taoiseach Micheál Martin encouraged public sector workers to accept the deal, which will cost the Government €1.6billion.

When the existing pay increases contained in the Building Momentum agreement are included, the total cost goes up to €2.7billion.

The Taoiseach said the additional offer recognised that workers were living in "extraordinary times".

"I think it's a fair agreement," he said. "I think we're going through and will be going through a very difficult period economically because of the war in Ukraine. We need to work on this one, through this crisis in a collective way and, in that context, I would hope and would recommend that the deal will be accepted," he said.

Under the deal, public sector workers will see a pay increase of 3% backdated to February 2022 with a further increase of 1% or €500, whichever is greater, in October. This 1% increase was already agreed upon as part of the original Building Momentum agreement.

Next year, employees will receive a 2% increase in March followed by an increase of 1.5% or €750, whichever is greater, in October.

The structure of the deal means those on lower incomes would see a higher percentage increase.

The ICTU said that the minimum payment of €750 a year from next October means the package would be worth 8% to a worker earning €25,000 a year and 7% to a person on €37,500 a year.

Building Momentum is the public service pay agreement which was agreed to in February before the extent of the cost-of-living crisis became apparent.

Speaking yesterday, PSC chairman Kevin Callinan said he believed this proposal was the best that could be achieved through negotiations.

"Neither side has achieved all it sought, but this package is a significant improvement on the pay terms of Building Momentum, and it is worth more to those who need it most," he said.

Mr Callinan added that Public Expenditure Minister Michael McGrath and the Government have promised to supplement pay measures with other cost-of-living supports through the Labour-Employer Economic Forum process and the forthcoming Budget.

The Association of Secondary Teachers, Ireland said in light of the proposal it is suspending its September ballot on industrial action, to consider the offer, as is the Irish National Teachers' Organisation.

The Garda Representative Association said its Central Executive Committee will consider the proposal and the Association of Garda Sergeants and Inspectors told members that the proposal is the "best that could have been achieved".

Yesterday, Mr McGrath said it was a "fair deal for public servants" that is also "affordable and sustainable" for the taxpayer.