Pension levy lightened

The so-called ‘pension levy’ has been slightly reduced for all public servants with effect from 1st January 2014. The change – worth €125 a year – was implemented by exempting more earnings from the levy. IMPACT and other unions successfully sought this adjustment in talks on the Haddington Road agreement last year. Although it’s a very modest improvement, it’s significant because it represents the first positive movement in public service incomes since 2008. Public servants’ pay was effectively cut by an average 7% when the levy was introduced in 2009. 2010 bought further pay cuts. Public servants who earn over €65,000 – about 13% of all public sector employees – saw a further cut under Haddington Road, although this will be restored over time for most of them. An additional cut of 10% for new entrants from 2011 was also addressed under Haddington Road and last October unions achieved the end of the two-tier pay system that it had introduced.

The reduction in the so-called ‘pension levy’ will be done by halving the rate of 5% on earnings between €15,000 and €20,000.

This story was originally published in the IMPACT members’ e-bulletin on Friday 10th January 2014. Read the full edition HERE. The e-bulletin circulates every fortnight to all IMPACT members. If you are an IMPACT member, but you are not receiving the e-bulletin, it probably means we don’t have your email address. If this is the case, simply send an email to with your full name and place of employment with ‘Address for e-bulletin’ in the subject heading. This will enable us to update our records and you’ll start receiving the e-bulletin straight away.

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