The Unite union has branded the Public Services Commission latest - and final - pay offer for government workers as ‘derisory’.

It said it will be balloting members on the offer which it said was worse than the previous one.

A three-year pay deal was rejected by members of the Prospect and Unite unions before Christmas.

This was the third offer to be rejected and would have involved a 4% increase this year, followed by 2.5% next year and 2% in 2026-27.

Last week, the PSC unveiled a new, two-year deal - and said this will be its final offer. This proposes to increase the salary of those employees under its terms and conditions by the same amounts of 4% in 2024-25 and 2.5% in 2025-26.

But Unite the Union Isle of Man responded with a post on its Facebook page, saying: ‘For all our PSC members, there will be a ballot commencing shortly for the derisory offer from the PSC.

‘Your voice and rejection of the three-year deal seem to have fell [sic] on deaf ears and now we are being asked to ballot on a worse offer than before but on a two-year deal.’

It added: ‘For the avoidance of doubt, the joint unions started pay talks in December 2023. Our claim to put more money in the middle and lower paid workers has not been considered, yet the approach of a blanket 4% across the board is what is being offered.

‘The elitist on movie star wages would reap the benefits yet the workers who do provide the essential services are left behind.’

The final offer follows a meeting with Prospect and Unite the Union this month when it was acknowledged that the last offer was rejected due to members’ concerns regarding the third year, suggesting it might result in an increase below inflation.

In a statement, the PSC said: ‘This decision reflects the Commission’s desire to find a resolution as quickly as possible, particularly since staff have not received any pay increase for the current year.’

The PSC said it had favoured a three-year deal, which it said had provided financial clarity. As a result, it had been willing to offer a higher percentage than what was budgeted for in year two.

‘Changing to a two-year deal means that this assurance has been removed and therefore the two-year offer is less attractive to the Commission,’ it said.

‘Consequently, any revised offer for a shorter period must sit within the budgetary provisions and be more affordable.’

In addition, the PSC plans to harmonise the annual leave entitlement for all PSC staff who accrue 10 years’ service, taking it from 28 days to 30 days per year as from April this year.