The Minister for Public Expenditure Brendan Howlin has said he is "confident" trade union Siptu will accept the proposed new public service pay deal.

Under the deal, staff in the public service would receive an increase in earnings of about €1,000 through changes in the application of the pension levy.

In return for pay restoration, trade unions representing public service staff would be obliged to reaffirm commitments to solve disputes by peaceful means through binding arbitration.

Siptu, the biggest trade union in the country, is to consider the agreement today. It indicated last month it planned to raise issues such as out-sourcing and privatisation of State services during negotiations on the new deal.

Mr Howlin on Friday said: “I am very confident that the deal is on course to be accepted. But it is a matter for unions.”

The talks on public service pay restoration, which have been under way since May 11th, are being facilitated by the Labour Relations Commission.

Any outcome of the talks has to be put out to ballot by trade unions and other bodies representing about 300,000 staff across the public service.

Two unions, the Irish Medical Organisation and the Teachers Union of Ireland, have come out against the proposal.

IMO president Ray Walley said the proposed Lansdowne Road agreement failed to address the inability of the health service to retain existing doctors and attract new medical personnel.