Civil and public service fixed allowances, which were cut at the height of the economic crisis, are to be restored by 2020. The timetable is set out in the new Public Service Pay and Pensions Bill, published earlier this month, which gives effect to the new pay deal backed by IMPACT and other unions.
The legislation repeals the 2009 FEMPI Act with effect from 1st January 2008. It also repeals section 2(3) of the 2009 FEMPI No.2 Act – the legislation that reduced fixed periodic allowances by 5% – from 1st October 2020.
Allowances linked to pay scales were restored in line with pay awards under the 2015 Landsdowne Road Agreement, but many fixed allowances were not. The union had earlier sought clarification from the Department of Public Expenditure and Reform (DPER) over when these allowances would be increased in line with wider pay restoration.