Kieran O'Donnell (Limerick City, Fine Gael)

I again thank the Deputy for raising this important matter. As I have stated, I am taking this matter on behalf of the Minister for public expenditure and reform, Deputy Chambers. Given how diligent Deputy McGrath is, I have no doubt he has already taken the matter up with the Minister. I ask him to outline the specific circumstances to the Minister directly following the debate.

As I mentioned, the community and voluntary sector plays a vital role in delivering essential public services across Ireland. These organisations, while funded by the State, are not public service bodies and their staff are not public servants. Their pay and conditions are set by their employers and not through public service agreements. I acknowledge these organisations do great work.

This year, agreement was reached following discussions led by the Department of Children, Disability and Equality at the WRC. This agreement addressed the funding required to move the pay of such workers in line with current and future public service pay agreements while responding to the fact that such workers are not public servants or employees. This agreement provides for an increase in funding of 9.25% on a phased basis and runs until 31 October 2026. This is in line with the general round increases provided for in the Public Service Agreement 2024-2026. The agreement provides that funding will be adjusted to allow for the application of the equivalent general round pay adjustments as provided for in any successor agreement. Adjustment will be in line with the phasing of any future public service sector pay agreement. The agreement also allows for future adjustments in line with any successor public service pay deals.

There will be a data gathering exercise to support the application of low pay provisions in the future. The data gathering exercise will provide a basis for examining the application of the low pay provisions in future public service pay agreements to the funding for non-public service organisations. The public service agreement provides that minimum increases are attached to four of the seven general round increases provided over the two and a half year period covered by the agreement. This is a significant step in recognising the contribution of workers in the sector, ensuring the sustainability of the services they provide.

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