The Government is to call in trade unions for talks on a new Croke Park agreement.
The Government is to seek "a significant advance" on reforms already delivered in the public service and "a large sustainable additional fall" in the cost of delivering the public service up to 2015.
In a statement, the Department of Public Expenditure and Reform said: "The Government considers if the public service pay and pensions bill is to make the necessary contribution to the consolidation in expenditure that will be necessary up to 2015, a new deal, setting out a new agenda for change and productivity, is necessary"
The department said the Government would be looking to secure an additional substantial reduction in the cost of public service delivery through this process in 2013 and beyond.
It said that the protections on pay and against compulsory redundancies would remain in force.
"The Government intends that any deal would build on the changes agreed and the industrial relations framework established under the Croke Park agreement "
It said it was prudent for the Government to start talks now on a replacement agreement for the current Croke Park deal which expires in 2014.
The department said the Government would like these talks to take place as quickly as possible to assist in delivering expenditure savings in 2013 and in subsequent years.
"The Government has indicated it is willing to enter facilitated process if that will assist the parties in coming to a final agreement early in the new year."