The Scottish government estimates it will need about £550m to cover the increased costs for public sector workers, rising to £750m when indirect employees such as those in childcare, higher education or social care are included.

SNP ministers have been told to expect about £300m in compensation from the Treasury. This figure is based on the Barnett formula – designed to give devolved nations a proportionate share of spending in England.

Addressing MSPs, Robison said Scotland should not be “punished” for deciding to spend more on its public service, which is proportionally larger and better paid relative to the UK as a whole.

The finance secretary described the proposed compensation from the Treasury as “unacceptable” and said it should “fully fund the actual costs for Scotland’s public sector”.

Announcing the extra funding for local authorities, Robison cautioned against large council tax rises.

A Holyrood freeze on the levy is to be lifted by the government in April, with some councils reportedly considering double-digit increases.

The Treasury had said it had to make difficult financial decisions as it faced a £20bn black hole in public finances.

A spokesperson said previously that the Scottish government had received a record £47.7bn budget “as part of support provided in relation to changes to employer National Insurance”.