Minister for Public Expenditure and Reform Paschal Donohoe has announced the establishment of a pay commission to discuss how public servants' pay can be restored in an orderly and affordable manner.
He said he is aware of the demands that exist in the area of public pay.
However, he warned that public pay restoration must be managed in a way that is affordable for all.
The minister said he intends to set in motion the next phase of pay restoration by establishing a Public Service Pay Commission.
This commission will report by the middle of next year and provide inputs on how the unwinding of the FEMPI legislation should proceed.
The Financial Emergency Measures in the Public Interest Act was introduced in the wake of the economic crash to facilitate cuts to public service pay and pensions.
"The work of the commission will facilitate my engagement with public sector trade unions and other stakeholders on the successor to the Lansdowne Road Agreement," he told the Dáil.
Mr Donohoe also said that the Government has made no provision for pay increases outside the terms of the Lansdowne Road Agreement - despite the threat of industrial action from Gardaí and teachers.
Asked about demands from public service unions for acceleration of restoration of pay cuts, he said they had no plans to change the structure and pace of wage restoration which he described as forming the centrepiece of the Lansdowne Road Agreement.
He confirmed that no allocation has been made for any potential pay rises for Gardaí arising from the current review due to be completed in December.
He said the unwinding of emergency financial legislation would have to be carried out at a pace that was affordable and financially sustainable for all - and that he would be relying on advice from the planned Public Service Pay Commission to advise him on the best way forward.
Fianna Fáil's spokesperson on Jobs, Enterprise & Employment, Dara Calleary, said that the delivery of additional services in the Budget will fall to the civil and public service.
He stressed the need for income restoration and said the work of the new Public Service Pay Commission must commence as soon as possible.
