Pearse Doherty (Donegal South West, Sinn Fein)
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Question 39: To ask the Minister for Finance the number of persons currently employed by the State who are earning more than €100,000 per year; and the total cost to the State of all earnings in excess of €100,000 per year. [18587/11]

Seán Crowe (Dublin South West, Sinn Fein)
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Question 43: To ask the Minister for Finance the total savings to the Exchequer in a full financial year arising from a cap of €100,000 on public sector pay. [18588/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 45: To ask the Minister for Finance the legal obstacles that may exist to prevent placing a 45% levy on earnings of more than €100,000 per year for those working in the public service. [18586/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 39, 43 and 45 together.

Data on earnings in the public sector is sourced from the Revenue Commissioners and similar data to that sought was supplied in response to Parliamentary Questions, Reference Nos. 2785/2786/2787 and 2788, of 18 January 2011. On the basis of the available tax-based data it is not possible to identify and exclude income from public sources to groups that would not normally be regarded as employed within the public service or to distinguish the earnings of employees associated with atypical work patterns. Accordingly, it is not possible from this data to estimate the total cost to the State of all earnings in excess of €100,000.

However, the total savings to the Exchequer in a full financial year arising from a cap of €100,000 on public sector salaries is estimated at €265m. The estimate takes account of the reductions in pay arising from the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, but does not take account of any offsetting reductions in taxes and levies. As the combined effect of the estimated marginal tax rate and the pension related reduction at a pay level for a public servant of €100,000 p.a. or higher is at least 62.5%, the estimated net savings would be reduced to less than €100m.

There are an estimated 7,000 persons currently employed by the State on pay rates in excess of €100,000 per year. The placing of a 45% levy on earnings above €100,000 per year for those working in the public service is not proposed nor will I speculate on any legal considerations that might arise in the event of such a proposal being brought forward.

The estimates do not include staff of commercial State-sponsored bodies since the Minister for Finance is not responsible for setting the rate of pay for employees (other than CEOs) in the commercial state sector.