Circular 15/2026 to Members – Update on Public Service Pay Talks and Consultation Process

7 July 2026

Dear Branch Secretary

I just wanted to update you on the current situation regarding public service pay.

The current Public Service Agreement expired on 30 June 2026. In recent weeks, the Public Services Committee (PSC) of the Irish Congress of Trade Unions has engaged in exploratory discussions with Government regarding a successor agreement. Unfortunately, these discussions failed to establish a basis for formal negotiations.

The PSC’s position is that public servants have experienced a real loss in earnings in recent years. Pay increases under Building Momentum and the first two years of the Public Service Agreement 2024-2026 amounted to 15.75%, or 16.89% on a cumulative basis. Over the same period, average annual inflation totalled 20.8%, or 22.44% cumulatively. The PSC’s view is that, taken together, this means that public service pay has fallen behind the cost of living.

While no specific pay claim has yet been tabled, the unions have made it clear that any new agreement must address both the immediate period from July to December 2026 and pay arrangements for 2027 and beyond.

Inflation has re-accelerated during 2026, driven largely by increased energy costs and their wider impact on household expenses, including fuel, home heating, rents and mortgage interest costs. A number of economic forecasters, including the Central Bank, the European Commission and the ESRI, are projecting inflation of approximately 3.5% this year, with a central forecast of 3.6%. Some forecasts suggest that inflation may temporarily exceed 4% later in the year before easing during 2027.

In addition to pay, the PSC has identified a number of other important issues that require attention in any future discussions, including:

• The resolution and implementation of outstanding local bargaining claims;
• Remote and blended working arrangements;
• Housing-related challenges affecting public servants; and
• The management and governance of artificial intelligence within the public service.

Given the lack of progress in the exploratory discussions, the PSC has asked affiliated unions to prepare for the possibility of industrial action ballots should meaningful negotiations fail to materialise. No ballot has been authorised at this stage and there remains an opportunity for constructive engagement with Government.

The Executive Committee met today, 7 July 2026, to consider the current position. The Executive agreed that, before determining the Association’s position and any next steps, it is essential that members have an opportunity to express their views on the issues arising and on the approach that should be adopted in the forthcoming pay discussions.

Accordingly, the Association is now commencing a consultation process with members.

Branches are invited to discuss the current situation and submit their views through their Branch Representatives for consideration by the Consultative Council, which will meet as follows:

Consultative Council Meeting
Date: Tuesday, 28 July 2026
Time: 4.00 pm
Venue: AHCPS Head Office, Flemings Hall, 12 Flemings Place, Dublin 4, D04 A028

Attendance at the Consultative Council is usually by the Chairperson and Secretary of each Branch. Members who wish to provide their views directly to the Association are also welcome to do so by contacting Head Office at info@ahcps.ie

The views expressed during this consultation process will assist the Executive Committee in determining the Association’s position in relation to the forthcoming pay discussions and any further developments that may arise. I would therefore encourage all members and branches to participate in this process so that the views of the membership can be fully considered.

Further updates will issue as matters progress.

Please ensure that this circular is circulated to all members in your branch.    This circular is also available on the website.

Yours sincerely

Ciaran Rohan

General Secretary