Written answers
Wednesday, 24 October 2012
Department of Public Expenditure and Reform
Public Sector Pay
Luke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Public Expenditure and Reform what the savings to the Exchequer would be if all civil and public servants had their salaries capped at €80,000; and if he will make a statement on the matter. [46647/12]
Brendan Howlin (Wexford, Labour)
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The estimated annual savings to the Exchequer arising from a cap of €80,000 on civil service and public service salaries is estimated at €500m. 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 deduction at a pay level for a public servant of €80,000 p.a. or higher is at least 62.5%, the estimated net savings would be reduced to approx. €188m.
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