Public sector pay talks have adjourned for the day after 15 minutes of preliminary discussions.
The talks are the first phase of discussions between officials from the Department of Public Expenditure and representatives of public sector unions on restoring the pay of more than 300,000 public servants.
Officials said both sides gave opening statements and outlined their position.
They will resume with a technical briefing on the current fiscal position for Ireland on Thursday afternoon.
Full negotiations are expected to begin next week.
Unions have called for a reversal of the cuts introduced since 2009.
Earlier, Minister for Public Expenditure Brendan Howlin said exploratory talks between the Government and public sector unions must be based on "realism about how much the Government can afford".
Entering the discussions with officials from Mr Howlin's department, Shay Cody of IMPACT said public servants had already delivered in terms of productivity.
Eoin Ronayne of the Civil Public and Services Union warned small percentage increases of 1% or 2% would not be accepted by members.
Discussions may centre in flat rate increases especially for low earners.
Gene Mealy of SIPTU said they would seek to protect members from "outsourcing" of services.
Entering the talks, Liam Doran of the Irish Nurses and Midwives Organisation said this was about getting back the money "taken from nurses" over the past few years, and this was "the start" of that process.
Most participants said they were eager for the process to begin, and would wait to see what was on offer.
Employers are urging the Government to consider tax reductions rather than pay increases.
Writing in today's Irish Independent, Mr Howlin acknowledged that public servants had "stepped up to the challenge that the economic crisis put before them".
However, he added that the Government did not have a "greenfield site" for a new pay deal and that the restoration of pay "will not be as much as some might wish".
As speculation grows that pay restoration will be linked to further productivity, Minister Howlin said workers must be willing to increase productivity and adapt to reforms.
Ahead of the talks, IMPACT said that the public sector must keep in step with developments in the private sector, where an estimated 57% of employers intend to make some pay improvements this year.
Speaking on RTÉ's Morning Ireland, IMPACT Communications Officer Niall Shanahan said the union will also want to talk about pay restoration in the context of beginning the process of unwinding the emergency legislation (FEMPI) that cut pay from 2009-2013.
As for pay restoration being linked to increased productivity, Mr Shanahan said his members would not countenance any change to their terms and conditions of employment.
Sinn Féin has welcomed the beginning of the public sector pay talks.
However, the party's finance spokesperson Pearse Doherty said the Government's priority needs to be the restoration of pay for those on low incomes.
He said: "The idea of a percentage increase right across the board isn't - in our view - acceptable, because it would benefit those on the higher end more so than those on the lower end".
Mr Doherty added: "The Government also have to deal with the minority in the public sector who have very high pay … those in this day and age aren't deserving of a pay increase."
Fianna Fáil's Seán Fleming has said public sector pay should not fall behind or run ahead of private sector pay.
He said the CSO should be brought in to independently verify the figures.
Asked if there should be increased productivity from public sector workers for pay rises, he said reform was the norm.
Fianna Fáil brought in emergency legislation in 2009 to allow for cuts to public sector workers.
The Government intends to unwind the legislation as the Haddington Road Agreement expires next year.
Taoiseach Enda Kenny backed Mr Howlin's comments.
Speaking before today's Cabinet meeting, Mr Kenny said that the Government "will not do anything foolish" in the public pay talks and it is well aware of concerns from Europe.
He said the Minister for Public Expenditure had been mandated to discuss how to start dismantling the financial emergency legislation but added he does not have "a blank cheque".
