Paschal Donohoe (Dublin Central, Fine Gael)
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Public service pay has been governed by a system of collective agreements since the Croke Park Agreement was negotiated in 2010. These collective agreements have helped to ensure that public pay is managed in a sustainable, affordable and orderly manner. These agreements have also enabled significant reform of public services and changes to work practices.

The value of public pay deals to the Government and the taxpayer is ensuring that pay costs are managed in a sustainable and orderly way and in a climate of industrial peace.

I do not envisage a role for broad based pay caps in the civil service at this time. The Public Service Agreement 2024-2026 applies to all civil servants and provides for increases of 10.25% over a two and a half year period. This is made up of general round increases totalling 9.25%, as well as a provision for a Local Bargaining mechanism equivalent to 1% of the basic pay cost.

Lower paid civil servants will see benefits in excess of this due to the targeted measures contained in the agreement. Over the lifetime of the agreement, the lowest paid civil servants will see cumulative benefits of up to 17.3%, inclusive of the local bargaining provision. This is a progressive approach, which ensures that those who are most vulnerable to inflation and cost of living issues will see the greatest increase in their pay.

In addition, on 27 June 2023 Government agreed to progress the establishment of the Senior Posts Remuneration Committee (SPRC), in line with the recommendations of the Report of the Independent Review Panel on senior public service recruitment and pay determination processes. This Committee will advise the Minister on remuneration arrangements for senior posts in the Public Service and CEOs of Commercial State Bodies (CSBs). In particular, again in line with the aforementioned Report recommendations, the first review to be carried out will be the CEOs of CSBs. A range of issues related to this review is currently being considered by the Committee.