Workers in the public sector could be in line to gain an average of €800 or more each as part of the Government's reversal of pay cuts.

The Irish Times reports around €250m will be allocated to restore the pay levels of nearly 300,000 public sector workers.

The increase will come in the form of tax cuts and pay rises, and largely tilted in favour of lower-paid public servants.

Last week's 'Spring Statement' revealed that a maximum of €1.5bn had been allocated by the government to tax cuts and spending increases.

Talks on pay restoration in the public sector will get underway between Government representatives and unions next week.

The government has said the €2.2bn in cuts to public sector pay and pensions since 2009 cannot be reversed in one go.