Talks have been continuing since 10.00am as unions try to stave off across the board pay cuts for the country's 313,000 government employees in next week's budget.
Two strands of negotiations are continuing.
The first involves attempts to agree so-called bridging mechanisms to secure cash savings in 2010 totalling €1.3 billion.
In these talks, attention has focussed on a union proposal for each public servant to lose 12 days' pay in 2010 - tantamount to a 4.6 % pay cut.
It's estimated that could bring in up to €750 million - still far short of the government savings target.
The Taoiseach and the Tanaiste have both said that this proposal alone is not enough in its present form to be the basis for an agreement.
The second strand is focussing on a broader transformation agenda to make the public service both cheaper and more efficient.
It is understood that if these overall reforms were delivered and verified, staff could claw back the value of their 4.6% pay cut by taking the 12 days' unpaid leave over a period of up to six years.
It is still unclear how the two sides can make up the full €1.3 billion in savings for 2010.
It is understood that some of the options under consideration include flat rate overtime, deferral of increments, extending the working day and new rosters.
Criticism of proposals for unpaid leave
Liam Doran of the INO has called on people to 'back off and keep their mouths shut' amid the ongoing public service pay talks.
He was responding to criticism of the unpaid leave proposals put forward by the unions at talks on the public service pay.
He said if the public service strike had gone ahead today, the very people who were being critical would be saying that the unions should be inside Government Buildings trying to reach a deal.
Fine Gael Enterprise Spokesman Leo Varadkar has hit back at Mr Doran's remarks.
'The proposals being discussed by Government and trade unions will take 250m hours out of the public service. This means fewer gardaí on the beat, fewer hospital appointments and less education for our kids,' Mr Varadkar said.
'It will also mean an across-the-board pay cut for all public servants with school cleaners and clerical officers taking the same cut as public servants on six-figure salaries.
'Ordinary taxpayers, consumers, users of public services and their representative groups, and the Opposition have been shut out of these talks. We have a responsibility as politicians to speak up for them.
'Mr Doran's 'Uno Duce, Una Voce' remark is totally out of order. Ireland is still a democracy and we won't be told to shut up.'
Meanwhile, a growing number of Fianna Fáil backbenchers have expressed unease about the prospect of a pay deal with the public sector that involves unpaid leave.
A meeting of the Fianna Fáil parliamentary party took place today, at which backbench TDs voiced their concern about such a move.
With less than a week to go before the Budget, Minister for Finance Brian Lenihan is expected to brief deputies and senators on progress in the ongoing negotiations between the Government and the unions on the issue.
Speaking on RTÉ's Morning Ireland, Fine Gael Finance Spokesperson Richard Bruton said that pay cuts and reform in the public sector pay are better options.
Also speaking on the programme, Minister for State Conor Lenihan admitted there was anger among TDs but said there has been no agreement with the public sector unions on the unpaid leave proposal.
