Public sector pay to cost over €1bn

OVER €1bn of the additional €2.5 billion in spending announced by Finance Minister Brian Cowen yesterday will go towards paying public sector wages and pensions.

Due to increases agreed under the national wage agreement, the last benchmarking round and additional numbers in the public service, the cost to the Exchequer of the public sector continues to climb.

Last year, the wage bill for the public service's 280,000 workers came in at €14.1bn but will rise next year to €15.2bn - more than double the €6.7bn cost when the Coalition first came to power in 1997.