Talks on a new pay deal for the public servants are continuing late into tonight as the Government prepares to tackle the deeply unpopular pension levy.
As of this evening, sources told independent.ie that workers will see their incomes increased by as much as €1,000 from January.
Moves are afoot to introduce changes to the pension levy, which has been a source of major discontent among public servants.
Significantly, the Government's pay deal will run over two years and is expected to include pay increases in 2017.
These combined with the changes in the pension levy could result in an income boost in the region of €2,000 for workers throughout the duration of the new deal, which involves an extension of the Haddington Road Agreement.
There will also be concessions in the area of flexi-time, outsourcing and promotion opportunities.
But unions will be expected to sign up to a new agreement outlining reform measures.
To date, the talks have focussed on agreeing the general text which forms of the bedrock of the pay talks.
But after considerable progress, the focus today switched to pay as the word spread from Government circles that a deal was on the cards.
While there is no guarantee the talks will be finalised in the coming hours, sources on both sides say an agreement is firmly in sight.
There is now the prospect of the pay deal being agreed by the weekend and approved by Cabinet the week after next.