A new public sector pay deal has been agreed which will provide for increases of 10.25% and over a two-and-a-half year period.
The deal means a pay increase for 385,000 public servants including nurses, doctors, gardaí and teachers.
Negotiations went on throughout the night at the Workplace Relations Commission (WRC) after both sides were invited to there yesterday to give an update on their positions.
The talks began at 11am yesterday morning and continued into this morning.
The last round of pay talks was adjourned without agreement in the early hours of 11 January.
The Government had offered pay increase of around 8.5% over two-and-a-half years but unions had sought increases worth around 12.5%.
The first pay increase will be 2.25% or €1,125, whichever is greater, backdated to 1 January 2024.
This will be followed by a 1% increase on 1 June 2024. There will be a further 1% increase or €500, whichever is greater, on 1 October next.
On 1 March 2025 there will be a 2% increase, followed by a 1% increase on 1 August 2025.
On 1 February 2026 public servants will receive a further 1% increase with a final 1% taking effect on 1 June 2026.
A local bargaining instalment, equivalent to 1% of the basic pay, will issue on 1 September next year.
The pay deal will run for two-and-a-half years and the total cost amounts to €3.6 billion spread over four budget years - 2024, 2025, 2026 and 2027.
The local bargaining process mechanism will provide an avenue by which employers and grades, groups and categories of public servants can address issues involving changes in structures, work practices or other conditions of service.
The parties will be able to bring forward proposals, up to a maximum value equivalent to 3% of basic pay.
The Department of Public Expenditure said the deal will allow for ongoing co-operation with change and productivity improvements, whilst also providing for industrial peace for the next two-and-a-half years.
The lead union negotiator and General Secretary of Fórsa Kevin Callinan said they had succeeded in getting an improved offer from the Government but added that the talks had been difficult.
"It was more fraught than previous negotiations I think, but I suppose the important thing is that we have managed to get an outcome that can now be considered by our affiliate unions and hopefully then we will take that forward to individual members to have their say over the coming weeks," Mr Callinan said.
General Secretary of the Association of Garda Sergeants and Inspectors (AGSI) Antoinette Cunningham said she will be discussing the pay deal with members later today.
"The AGSI appreciate and thank the facilitators in the WRC during pay negotiations however we remain extremely concerned overall about how garda pay is negotiated and the Department of Public Expenditure and Reform's lack of understanding of garda work related issues," Ms Cunningham said.
"This is something we as an association will have to continue to raise with Government," she added.
"Those on the lowest incomes will receive up to 17.3% over the lifetime of this agreement inclusive of the Local Bargaining provision," Mr Donohoe said.
At a meeting of the Public Services Committee of ICTU, affiliate unions were asked to consider the terms of the deal and begin the process of organising ballots of union members with a balloting period to extend until Monday 25 March, in order to provide adequate time for all unions to consider the terms of the new agreement and to ballot their members.
Union negotiators said the improvements in the pay adjustments due in 2024, valued at 4.25% for the year, would mean that public service workers would receive more money in the first year than originally envisaged in the Government's initial pay offer.
