Government staff costs rose £43.1m last year, driven by pay awards and higher pension payments, according to the latest central government management accounts.
Employee spending reached £732.5m, up from £689.5m the previous year.
Treasury officials say the increase reflects the 3% PSC pay award, higher settlements for some groups, and a significant rise in pension costs for former employees, which moved with inflation.
Higher Payroll Costs
Most departments recorded higher payroll costs. Treasury saw increases linked to filling long‑held vacancies and project work funded through internal claims.
DESC’s rise reflects the 4% award for teachers and lecturers, alongside growing staffing needs for students with complex educational requirements. DHA’s costs climbed following the transfer of Ports Security from DOI and several posts funded through internal bids.
Manx Care continued its shift from bank and agency staff to permanent roles, with pay awards for medics, nurses and PSC staff adding further pressure. DHSC also saw higher costs due to recruitment into vacant posts.
DOI was one of the few departments to record a reduction, largely due to the release of an over‑accrual from the previous year’s pay award.
The accounts note that pension payments to former employees, recorded under “Other”, rose faster than civil service pay, contributing to the overall variance.
