The 1% cap on public sector pay rises in Scotland will be scrapped next year, Nicola Sturgeon has confirmed.
The Scottish government has largely stuck to a UK-wide 1% limit on pay rises that was introduced in 2013 after a two-year freeze.
But as she outlined her government's plans for the next year, the first minister said future pay rises would be based on the cost of living.
There have been reports that the UK government is drawing up similar plans.
The pay cap has led to complaints that public sector workers have seen dramatic real-terms drops in their earnings in recent years.
Ms Sturgeon told the Scottish Parliament that "nurses, teachers, police officers and firefighters deserve a fairer deal for the future".
She said: "We will, therefore, aim to secure pay rises from next year that are affordable, but which also reflect the real-life circumstances our public servants face and the contribution our public services make to the overall prosperity of our country."