Increasing salary costs for civil servants by just under three million pounds will put more strain on government budgets.
That's the view of the Public Service Commission after it was announced that public sector workers are getting a 2.2 per cent pay award.
It follows negotiations between the PSC and union representatives for the year 2016-17 - both parties were unable to reach agreement so had to go to independent arbitration.
The PSC was offering a one per cent pay rise whilst the unions were seeking a 4.4 per cent increase - in the end the arbitrator agreed the pay award should be 2.2 per cent.
The increase amounts to a rise in salary costs of £2.95 million - the PSC says expenditure projections with the Treasury's Medium Term Financial Strategy had only accounted for one per cent.
It means the unbudgeted portion of the pay award - around £1.6 million - will have to be funded from existing budgets.
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