Civil servants and Tynwald members have been awarded a double pay rise which will cost government about £2.5 million.
All of the island’s full-time and part time civil servants plus all those whose pay is linked to civil service rates – including MHKs and MLCs – are getting the increases.
They comprise a 0.5 per cent pay increase, backdated to April 1, 2013, for 2013/14 as well as a 2 per cent pay increase, to take effect from April 1 this year, for 2014/15.
It takes the basic salary of a Tynwald member to £38,771.33.
With no extra money available to fund the pay increases, it will be up to departments to find extra savings in their budgets.
Alfred Cannan, chairman of the Civil Service Commission, said the pay rises would cost government about £2.5m.
And he admitted it would be a challenge for departments to find the necessary savings.
The Civil Service Commission announced that an agreement had been reached with the Government Officers’ Association of Prospect following conciliation with the Manx Industrial Relations Service.
Union members voted to accept the pay offer when they were balloted.
Adjustments in respect of both pay awards will be paid in April, including back pay for the year 2013/14.
A public sector pay freeze was announced in the 2010 Budget.
Civil servants and Tynwald members were last awarded a pay rise in 2012, with an increase of 20p per hour.
The previous year, they were awarded a 1.2 per cent pay rise.
There are about 2,300 civil servants.
They make up about 20 per cent of the public sector workforce.
On top of their new basic salary of £38,771.33, Tynwald members get 30 per cent extra for being a department member (40 per cent for Treasury) and 50 per cent for being a minister.
The Chief Minister gets 80 per cent on top of his basic salary and the Speaker gets 60 per cent. In 2012, a number of MHKs declined to take the pay rise, including Chief Minister Allan Bell.