Written answers

Thursday, 1 October 2015

Department of Public Expenditure and Reform

Haddington Road Agreement Implementation

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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27. To ask the Minister for Public Expenditure and Reform the outcome of the Landsdowne Road Agreement financially for those persons earning less than €65,000; the outcome at the conclusion of the Haddington Road Agreement financially in respect of those earning over €65,000; and if he will make a statement on the matter. [33410/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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As part of the measures required to repair the Government finances and meet our international commitments to reach the GDP Deficit target of 3% by end 2015, it was necessary in 2013 for the Government to secure agreement (the Haddington Road Agreement) with Unions and Associations representing public servants for the introduction of significant productivity measures and also additional  pay cuts for public servants earning over €65,000.  There was a commitment given in that Agreement, for the restoration of the 2013 pay cuts in two equal phases in April 2017 and  1 January 2018.  For those on  annualised remuneration in excess of €110,000, the Government has decided that restoration will be in three equal phases with the first phase due to take place in April 2017 and the two remaining phases in April 2018 and 2019.

The provisions of the Lansdowne Road Agreement, which are significantly weighted in favour of the lower paid, also  make provision for increases in gross pay in 2016 for those on pay up to €31,000 and in 2017 for lower and middle income public servants, namely those on pay up to €65,000. For any public servant whose annualised salary is below €24,001 there will be an increase in gross pay of 2.5% from 1 January 2016.  For those on annualised salaries between €24,001 and €31,000 there will be an increase in gross pay of 1% from 1 January 2016.  For all those on annualised salaries up to €65,000 there will be an increase in gross pay of €1,000 from 1 September 2017.

Additionally, all public servants will benefit from the Pension Related Deduction (PRD) measures contained in the Lansdowne Road Agreement. On 1 January 2016 the exemption threshold for payment of Pension Related Deduction (PRD) will increase from €15,000 per annum to €24,750 per annum and on 1 September the exemption threshold for payment of Pension Related Deduction (PRD) will increase further from €24,750 per annum to €28,750 per annum. The value of the PRD measures to individual public servants is €733 per annum in 2016 increasing to €1,000 in 2017 with lower paid public servants benefiting to a greater extent through the tax code.

Following acceptance of the Lansdowne  Road Agreement by the Public Services Committee of the Irish Congress of Trade Unions, my intention is to bring forward the necessary legislation to give effect to the provisions of the Agreement shortly.

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