Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The status of pay negotiations is that we are in the first year of a three year collective agreement to progressively dismantle emergency legislation, giving individual public servants benefits of between 7.4% and 6.2%, or up to 10% for new entrants hired after 2012.

Unwinding the emergency legislation has been a priority for the Government and we have ring-fenced substantial resources to deliver this. Over the period from 2018 to 2020, some €887 million has been allocated to fulfil our commitments and honour the terms of the agreement. A further €306 million in carryover costs and additional funding will be required to completely unwind the financial emergency measures in the public interest, FEMPI, pay reductions bringing the total level of resources committed to €1.1 billion.

In addition the public service stability agreement required two further issues to be addressed: new entrants and, where they occur, recruitment and retention difficulties. Regarding new entrants, following my report to the Oireachtas last March, we engaged with the public services committee of the Irish Congress of Trade Unions and negotiated a deal which will see 35,750 new entrants, 58% of the total, benefitting in year one, rising to 78% in year two. All of the current stock of new entrants will have fully benefitted by 2024. This is a fair agreement which manages the €200 million cost associated with the remaining salary scale issues in a responsible and affordable manner. In 2019 the cost of this measure is €27 million. Importantly, by intervening further up the pay scale, at points 4 and 8, this initiative will increase the ongoing attractiveness of public service employment, helping to retain staff.

The Deputy will be aware of the Public Service Pay Commission and its various reports in this area.

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