The union, which represents about 1,150 manual and technical workers, put in the claim last week.
As well as asking for money, the Transport and General Workers Union members are seeking a one-hour reduction in the working week and an extra day’s holiday entitlement.
Union official Nick Corbel said he believed the claim was ‘reasonable and very restrained’ in the circumstances.
‘There is a view among our members that the retail prices index figure does not reflect the true cost of living in the Island,’ said Mr Corbel.
The union members have also asked for parity on the length of the working week with their civil service counterparts.