Pay deal 'restraint' for public sector workers

Staff employed by the Public Services Commission have been offered a 2% pay rise

A government commission has exercised "restraint" in a three-year pay deal offered to public sector workers on the Isle of Man.

The deal would see members employed under the Public Services Commission (PSC) given a 2% rise for the current financial year and for each of the next two.

Two unions previously said the offer fell "well below" expectations but Cabinet Office minister Kate-Lord Brennan said a balance "must be struck".

The PSC said it was keen employees received "certainty in terms of pay increases for this year and future years, within what is affordable and reasonable".

The offer would see a 2% increase backdated to 1 April, followed by a second 2% increase for the financial year 2025-26.

A further 2% rise, due in 2026-27, would become void and be renegotiated if the March 2026 inflation rate was 1% higher or lower than 2%.

'Impact on funds'

A statement from the commission said there had been "significant PSC pay awards in recent years" with 6% pay awards offered and agreed in 2022/23 and 2023/24.

Each 1% increase in the PSC wage bill alone costs the taxpayer in excess of £1.5m, without taking into account national insurance and pension contributions, it added.

Chairman of the PSC Ms Lord-Brennan said "a focus financial responsibility for government departments" was a "key priority".

"Pay and staffing budget is often the biggest area of spend and so there cannot be year on year large increases in terms of pay awards at this stage without impact on funds available for services for the public", she said.

The minister said whilst fair pay and terms should "of course be taken into account", the "wider view... between the cost of the public sector and the economy" should also be considered.