42. Deputy Malcolm Byrne asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to outline the Government's position for the forthcoming public sector pay talks. [51002/26]

68. Deputy Peter 'Chap' Cleere asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if he will report on the engagement he has had in relation to a new public sector pay deal; and if he will make a statement on the matter. [51526/26]

I propose to take Questions Nos. 42 and 68 together.

The Government’s approach to public service pay over many years has been to engage through an established framework of collective bargaining with public service unions and associations. This is a tried and tested approach that has supported sustainable improvements in pay for public servants and orderly management of the public finances, while also facilitating public service reform and changes to work practices.

Before expiring at the end of June 2026, the Public Service Agreement (PSA) 2024 - 2026 delivered headline pay increases of 9.25% and provided for up to 1% of basic pay costs for local bargaining. Importantly like previous agreements the PSA was weighted towards the lowest paid, who received increases of 17.3%, inclusive of local bargaining. The final increase under the Agreement was 1 June 2026.

Government is committed to continuing to be a good employer and to providing competitive terms and conditions for public servants. This commitment is reflected in the significant investment made in the public service in recent years. Since 2020, the public service pay bill has increased by €12 billion, reaching €34 billion in 2026—an increase of 55 per cent.

As well as providing for increases in pay rates, this investment has supported substantial growth in the public service workforce, with employment now exceeding 420,000, an increase of more than 70,000 employees since 2020.

Against this backdrop, and in advance of the Agreement's expiry, my officials met with public service unions and staff representative associations to initiate exploratory discussions on the potential for a successor agreement. Officials remain available to continue engagement, with Government seeking to progress talks as quickly as possible through constructive dialogue.

As the Deputy will appreciate, it would not be appropriate to comment on the detail of discussions which should remain confidential to the parties. They take place against an increasingly uncertain environment. Suffice to say, therefore, that in an increasingly uncertain economic environment, a new public service agreement can play an important role in providing certainty and stability for public servants while supporting the effective delivery of public services. That is why I believe every effort should be made over the period ahead to engage and try to reach agreement.

As is always the case, any agreement will have to be balanced, affordable and capable of being accommodated in the context of other critical expenditure priorities, including social welfare, health and housing and within Government's overall medium-term fiscal framework.