The backdating of the 4 percent pay cut for civil servants has taken a new twist after revelations that it is dependent on the Government's finances.

Village managed to get hold of the Memorandum of Understanding signed between the Fiji Public service Association, the Fiji Teachers Union and the Interim Government.

Clause A (ii), in the memorandum said, " The restoration of the 4% shall be subject to further discussions/negotiation between the parties and will in accordance with the Government's commitment given in the 2007 revised Budget Address, depend on the state of government Finance."

According to FPSA General Secretary, Rajeshwar Singh the restoration should be backdated and finance is not an issue.