The Tanaiste says the prospect of bonuses for Irish Water staff will give them an incentive to work harder.

Joan Burton was reacting to a deal at the Labour Relations Commission which will see workers paid annual increases of up to 3 per cent over the next two years.

The government had taken the issue to the LRC after refusing to pay controversial bonuses for 2013 and 2014. amid public outcry at the level of remuneration paid to Irish Water workers.

The increments will be paid for 2015 and 2016, as well as being paid in arrears for the last two years.

That model will now return from 2017 onwards - but the Tánaiste says she's happy with the outcome of the talks, despite having been part of the government that tried to block bonus payments: