Brendan Howlin (Wexford, Labour) | Oireachtas source

As part of the measures required to repair the Government finances and meet our international commitments to reach a GDP deficit target of 3% or below this year, it was necessary for the Government to secure agreement with unions and associations representing public servants for the introduction of significant productivity measures and also additional pay cuts for public servants earning over €65,000 from 1 July 2013.

Following detailed negotiations, agreement was reached with the unions and associations on a collective agreement, the Haddington Road agreement, under which public servants earning annual salaries of over €65,000 had their pay reduced by between 5.5% and 10%. There was also a commitment in that agreement for the restoration of the 2013 pay cuts in two equal phases. The recent proposals for the extension of the Haddington Road agreement, which is the Lansdowne Road agreement, simply reconfirms that position.

The Government intends to honour that commitment subject to the acceptance by the unions and associations of the Lansdowne agreement proposals. Under these proposals, for those public servants on annualised remuneration up to €110,000, restoration will be in two equal phases; the first phase of restoration will take place in April 2017 and the second phase in January 2018. For those on annualised remuneration in excess of €110,000 restoration will be in three equal phases with the first phase due to take place in April 2017 and the two remaining phases in April 2018 and April 2019.

The pension related deduction measures contained in the Lansdowne Road agreement also apply to those on annualised salaries over €65,000. On 1 January 2016, the exemption threshold for payment of pension related deduction will increase from €15,000 per annum to €24,750 per annum - that is the exemption threshold - and on 1 September the exemption threshold for payment of pension related deduction will further increase further from €24,750 per annum to €28,750 per annum.

See this speech in context