Talks have started between health service unions and HSE management in an attempt to salvage an agreement on public sector pay.

The Government has set a target of Monday for an agreement on cutting the public sector pay bill, following the rejection of the 'Croke Park 11' deal in March.

The HSE needs to cut €150 million in its pay bill this year in order to stay within its budget and a cut of €300 million is required in the overall public service pay bill.

The Croke Park extension deal was rejected by the majority of unions in the health service.

However, the nurses' union, the IMO, and the doctors' union, the IMO have proposed alternative savings measures which they say would not directly impact on pay.