The Government is to begin negotiations for the 2017/19 contract period next month and is aiming to conclude the deliberations in time to inform the new budget in March next year.
The administration is targeting a wage to Gross Domestic Product ratio of nine per cent by the financial year 2018/19 and to remain at or even below this level over the medium term.
In its interim fiscal report the government said it will be carrying out a compensation review to properly document the range of allowances as well as the categories of workers who receive these allowances.
So far, a pilot has been conducted by the Finance Ministry and this will be extended to cover the ministries of health, education and national security by the end of November.
The interim fiscal report says the remaining ministries, departments and agencies will be completed by March next year.