Public sector workers and Tynwald members are getting a 3% salary increase after a pay dispute went to binding arbitration.

The 3% increase to gross pay for 2025-26 will backdated to April 1 this year.

Prospect had accepted the offer from the Public Services Commission but it had been rejected by Unite. A revised offer was also rejected by Unite - resulting in a referral to independent arbitration.

That offer, made in August, included 3% for 2025-26, backdated to April 1, and an increase in annual leave entitlement for all PSC staff who have accrued 10 years’ service from 28 days to 30 days.

This replaced a previous offer of 2.5% and a £200 lump sum - an offer that had been accepted by the other public service union Prospect.

But the pay award decided by independent arbitrator Rob Allan, and ratified by the Council of Ministers, is just for the 3% without any lump sums or harmonisation of annual leave entitlement.

The 3% increase will be applied to all pay ranges, pay bands, points on the pay spine, JESP ranges and appropriate enhancements, also backdated to April 1.

There are 4,276 government staff whose pay comes under the PSC.

Arbitration took place at the end of November after Mr Allan was appointed by the Manx Industrial Relations Service (MIRS). His decision is binding on both sides.

Tynwald members will also see their pay increase as a result.

To be eligible for the pay award and any backdated arrears, employees must have been in PSC employment on December 18, the date the award was ratified by the CoMin.

The team in payroll will be able to implement the award by February and this means that any arrears of pay that are due will be paid in that month’s salary.

Arrears will be calculated based on the calendar time and hours worked between April 1 2025 and January 31 2026.

Prospect regional officer Mick Hewer said he’d only seen a dispute go to arbitration three times in the 30 years that he’d been involved.