Pay award will have to come from existing budgets

That's the view of the Public Service Commission after it was announced that public sector workers are getting a 2.2 per cent pay award. 

 

It follows negotiations between the PSC and union representatives for the year 2016-17 - both parties were unable to reach agreement so had to go to independent arbitration. 

 

The PSC was offering a one per cent pay rise whilst the unions were seeking a 4.4 per cent increase - in the end the arbitrator agreed the pay award should be 2.2 per cent. 

 

The increase amounts to a rise in salary costs of £2.95 million - the PSC says expenditure projections with the Treasury's Medium Term Financial Strategy had only accounted for one per cent. 

 

It means the unbudgeted portion of the pay award - around £1.6 million - will have to be funded from existing budgets.