Scotland's health workers have been offered pay increases above the rate of inflation.

The annual pay award means an increase of 3.4% for most nurses, midwives and other health professionals, with NHS doctors and dentists offered 3.3% and a share of £7m in bonus payments.

Announcing the pay allocations, Health Minister Susan Deacon said middle ranking Grade E nurses would receive a 7.8% rise and there would be a 7% increase for Grade C nurses.

Unions had asked for 8%, but as expected, received less than half of that in most cases.

Ms Deacon said she had accepted the recommendations of the UK independent pay review bodies and hoped staff would see awards above the inflation rate of 2.2% as a sign that the Scottish Executive valued health workers.

The minister said there was special recognition for experienced nurses - "the backbone of the NHS" - and promised that awards would be made in full with no incremental increases.

She said: "I hope that front-line staff will see the executive's commitment to fair pay as recognition for their continuing outstanding efforts."

The Royal College of Nursing in Scotland welcomed the pay awards and said the decision to offer middle ranking nurses more would help to keep them in the profession.

Results of the salary review came just a fortnight after an RCN Scotland-commissioned study suggested that a third of Scotland's nurses would leave the profession if they could.

Secretary Margaret Pullin said: "Our evidence has been clearly heard - this is the second year that we will have had a non-staged, above inflation rise, with additional increases in areas of greatest.

Newly qualified nurses

"Last year, there were larger rises for newly qualified nurses that are beginning to help with recruitment.

"But this award will only help to keep nurses in the profession if the real term increases are continued year on year and if it combined with the extra cash needed to prevent the current NHS crisis from happening again."

Public services union Unison Scotland dubbed the pay package a positive move in terms of nurses' pay but said more needed to be done to recruit and keep nurses in the NHS.

Senior regional officer Jim Devine said "While this is a step in the right direction it will not resolve the present recruitment and retention problems.

"The average age of a Scottish nurse is 47 years and we are having problems recruiting and retaining younger people."

Dr Mac Armstrong, of the British Medical Association, said: "We welcome this announcement. This is the first time that the review body has reported directly to the government in Scotland and we welcome the fact that they have accepted the recommendations of the review body."

Blair's admission

Amid reports of nurses leaving the profession, the NHS has been under even further pressure in the last few weeks because of a near flu epidemic which has gripped the country.

On Sunday, Prime Minister Tony Blair admitted the NHS in the UK was underfunded, but promised more money and modernisation over the next few years.

The Scottish National Party said it was satisfied with the pay award but added that serious concerns remained over health service funding north of the border.

Spending levels

Health spokeswoman Kay Ullrich MSP said: ""Last weekend Tony Blair pledged to increase spending for the NHS in England and Wales by 5% to reach European Union average health spending levels.

"But the budget for the NHS in Scotland is only going to receive an average annual increase of 3.8% over the next three years.

"Funding for the NHS in Scotland is set at a lower level than the NHS south of the border."