Figures from the Central Statistics Office show that average weekly earnings in the public sector rose by 6.2% in the year to last December. This figure excludes the health sector.
The numbers employed in the public sector grew by 2,500 to 249,100 over the year, and increased by 5,800 from the September figure.
IBEC chief economist David Croughan said the rise in earnings was, with the exception of construction, ahead of increases in other major sectors of the economy.
He said rises in public sector pay also affected the cost of public sector pensions, which were linked to wage rates. He called for these pension costs to be taken into account in any future talks on public sector pay.