The Minister for Public Expenditure and Reform has confirmed that the government will make a "revised offer" to unions at the Workplace Relations Commission when public sector pay talks resume either next week or the following week.
The last round of talks ended in June when unions rejected an offer of a 5% pay increase over two years.
"We will come forward with a revised offer," Michael McGrath confirmed on RTÉ's News at One.
"We are very conscious that living standards are under pressure for all workers," he added.
However, Minister McGrath said he is concerned at the "time frame" of any impending agreement.
"We have said from the beginning our preference would be to agree pay terms for next year as well but the most recent statements from ICTU in particular has pointed to an unwillingness to talk about next year until there has been a satisfactory review of the existing agreement.
"That does raise some practical issues because if we agree terms for the remainder of this year, when then do we sit down to talk about public service pay for next year?," he asked.
"That is an issue we will have to address early on in the discussions."