Written answers

Thursday, 2 July 2015

Department of Public Expenditure and Reform

Public Sector Pay

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
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13. To ask the Minister for Public Expenditure and Reform if he will provide calculations as to the average effect of cost of living increases as calculated by the CPI since the advent of the economic crisis on the take home pay of public servants earning €30,000, €40,000 and €50,000; and the estimated impact of cost of living increases on the same categories of public servants during the lifetime of the Lansdowne Road agreement. [26130/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Take home pay is subject to variable tax impacts depending on individual circumstances while future tax impacts are subject to budgetary and expenditure decisions by Government which have yet to arise or be considered by Government. Any changes in income tax provisions apply across the economy irrespective of whether a worker is employed in the public or private sector.

The Harmonised Index of Consumer Prices (HICP) is the measure of price changes calculated by each Member State of the European Union. The index is based on a harmonisation and standardisation of practices within the EU and the purpose is to allow for the comparison of different consumer price trends in the different Member States. At present, just under 92% of the total Consumer Price Index (CPI) basket is included in the HICP. The HICP includes 626 of the 634 items in the CPI basket with the main difference being the treatment of owner-occupied housing and insurances. The HICP values in respect of the period 2008-2014 and the forecast values for the same index in respect of the period 2015-2018 are detailed below.

Harmonised Index of Consumer Prices (HICP)20082009201020112012201320142015201620172018
Outturn3.1-1.71.61.21.90.50.3
Forecast0.21.11.51.7

I should also point out that under the recently agreed proposals for the Lansdowne Road Agreement public service employees including those on annualised remuneration rates of €30,000 to €50,000 will benefit up to €1,000 on a full year basis from two increases in 2016 (January and September) in the Pension-related Deduction (PRD) exemption threshold.  In addition, those on annualised remuneration rates from €24,001 to €31,000 will benefit from a pay increase of 1% effective from January 2016.  Subsequently, with effect from September 2017 all public servants on annualised salaries up to €65,000 will be increased by €1,000.

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