Civil Servants will get an annual 2.5% salary raise and more family-friendly measures thanks to a new collective agreement signed this afternoon.

Prime Minister Lawrence Gonzi hailed the agreement, saying it gave stability to the civil service as the country faced its challenges in the coming years.

He thanked the trade unions for being reasonable in their demands, mindful of the current economic scenario.

The agreement covers six years and will cost the government €190 million with the workers getting a raise of 13% by the expiry of the agreement.

Dr Gonzi said that the government was mindful of its role as a model employer and he was happy to see the improved package of family family measures, including teleworking, flexi-time and reduced hours. 4,000 workers benefited from family friendly measures under the old agreement, and that number is now expected to double.

Dr Gonzi said that society now expected greater efficiency from civil servants.

The agreement was signed by Dr Godwin Grima, head of the civil service and representatives of the UHM, the GWU, the MUT, MAM MUMN, and unions representing architects and psychologists.

The last agreement expired in 2010.