Job losses 'probable' after public service pay rise

PSC chairman warning about tough decisions

The latest round of pay rises for public servants is likely to result in job losses, according to the Public Services Commission.

Wages will rise by 2.2%, after an independent arbitration process earlier this year.

It's a decision neither the Commission or trade unions, who initially demanded a 4.4% rise, are satisfied with.

But Treasury forecasts meant individual departments budgeted for only a 1% increase - meaning they'll have to fork out the outstanding £1.6 million from other areas.

PSC Chairman John Shimmin says it will mean tough decisions for the incoming administration.