The public service pay agreement provides for a pay increase of 7% over an 18 month period, with an initial six-month pay pause. This increase is to apply as follows: 3% from 1 January 2004; 2% from 1 July 2004; and 2% from 1 December 2004. In addition, the agreement provides for the payment of the increases recommended by the public service benchmarking body on the following basis: 25% of the increases in 2003 backdated to 1 December 2001. This was already provided for under the adjustment to the PPF agreed in December 2000 – 50% of the increase from 1 January 2004 and 25% of the increase from 1 June 2005.