Civil servants hit by pay cuts will be paid at standard rates for working overtime, the island’s white collar union has told its members.

The news came after a Government spokeswoman admitted last Friday that a problem in the payroll system that meant overtime payments were miscalculated was to be fixed.

The Bermuda Public Services Union said that talks were held last week with Wayne Furbert, the Minister for the Cabinet Office, and Cherie Whitter, the Deputy Head of the Public Service.

Armell Thomas, the BPSU president, explained in an e-mail update to members: “The Government has acknowledged that it was their intention that approved overtime would be paid as straight time at the pre-austerity applicable PS rate - i.e. without the 10 per cent cut.

“The Government has committed to compensating any public officers - including those who have retired since the implementation of austerity measures - who have not been paid overtime at the proper PS rate.”

He added: “The BPSU will provide further updates as talks with the Government continue on this matter.”

A Government spokeswoman said: “The Government of Bermuda values its working relationships with its union partners, which is built upon good will and mutual respect.”

She added that the “current state of affairs regarding the austerity measures has not changed” and that the programme continued “as agreed”.

The spokeswoman said: “The Government does note that there was a minor processing error applied to overtime calculations due to the way the payroll processing system is set up.

“However this anomaly has now been identified and is being corrected.

“Again, to be clear, this circumstance does not change or alter the agreement in any way, but rather upholds the agreement.”

The BPSU, along with the Bermuda Industrial Union and the Bermuda Union of Teachers, agreed to cost-saving measures from August 1 for most public officials.

The package came into force on September 1 for teachers and principals.

It included a 10 per cent pay cut for a year and also included a freeze on contributions to social insurance and the Superannuation Pension Fund.

The BPSU did not respond to a request for comment.