Budget confirms pay improvements

The Government made a budget allocation of €290 billion last week to meet its commitments to continue pay restoration in 2017, as agreed in the Lansdowne Road and Haddington Road agreements.

Under Lansdowne Road, public servants who earn less than €65,000 a year are in line for a €1,000 pay increase in September 2017. All public servants will see the full year value of the €1000 reduction in the pension levy effective from January 2017. Next year also sees the first of two phases of restoration of the temporary pay reductions, under the previous Haddington Road deal. These pay cuts only applied to staff earning over €65,000.

Minister for Public Expenditure and Reform Paschal Donohoe made the announcement during Tuesday’s Budget speech, when he also confirmed that the Public Service Pay Commission (PSPC) will start work shortly and report to him no later than the middle of 2017.

Minister Donohoe also repeated the Government’s oft-stated position that public service pay agreements are the sole vehicle it will use to restore public service pay cuts introduced in 2009, 2010 and – for some – under the Haddington Road agreement.

Minister Donohoe said the PSPOC would address the process of unwinding the Financial Emergency Measures in the Public Interest legislation, which introduced the pay cuts and pension levy

“The work of the Commission will facilitate my engagement with public sector unions and other stakeholders on the successor to the Lansdowne Road Agreement. In that way we can continue to provide a sustainable and quality public services that are affordable for all,” he said.