Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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55. To ask the Taoiseach and Minister for Defence if his Department's allocation in budget 2018 will see the issue of chronic low pay addressed in the Defence Forces; and if he will make a statement on the matter. [44030/17]

Brendan Ryan (Dublin Fingal, Labour)
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71. To ask the Taoiseach and Minister for Defence his views on the items included in budget 2018 which would be of direct benefit to the salaries and standards of living of Defence Forces personnel and their families; and if he will make a statement on the matter. [44046/17]

Paul Kehoe (Wexford, Fine Gael)
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I propose to take Questions Nos. 55 and 71 together.

Budget 2018 includes an increased provision of €25 million for 2018, and an additional €98 million for capital expenditure out to 2021. This reflects the Government’s commitment to defence and to our Defence Forces.

The 2018 pay allocation of some €509 million provides for the pay and allowances for a full strength Permanent Defence Force of up to 9,500 personnel, 550 civilian employees and 350 civil servants.

The benefits to all employees from the budget will accrue to Permanent Defence Force personnel. This includes reductions in the rates of the Universal Social Charge and an increase of €750 in the income tax standard rate bands.

The rates of remuneration and conditions of employment in the Defence Forces are set by reference to relative levels of pay across the various parts of the public sector. The Financial Emergency Measures in the Public Interest Acts of 2009-2015 and the Public Service Stability Agreement 2013-2018 (the Lansdowne Road Agreement) define current pay policy for Public Servants and members of the Permanent Defence Force.

PDFORRA signed up to the Lansdowne Road Agreement (LRA) agreement in March 2017. The finalisation of negotiations under the agreement allowed for the commencement of the process for the implementation of pay increases and arrears, which have now been applied to the Permanent Defence Forces. An increase of 2.5% from 1 January 2016, for annualised salaries up to €24,000 and 1% for annualised salaries between €24,001 and €31,000 was included in the weekly payroll of 5 July 2017. An increase of €1,000 from 1 April 2017, on annualised salaries up to €65,000 per annum was paid on 19 July 2017.

The pay of general service recruits and privates who joined the Permanent Defence Force post 1 January 2013, has been increased further following an agreement facilitated by the WRC between the Department of Defence, Department of Public Expenditure and Reform and PDFORRA. These improved payscales, have been backdated to 1 July 2016. The payments were made to relevant personnel on 30 August 2017.

On completion of recruit and three star training newly qualified 3 star Privates and their Naval Service equivalent can expect minimum gross annual earnings of €27,000 (inclusive of military service allowance).

Going forward, there is the potential for further increases arising from the recent negotiations on the extension to the Lansdowne Road Agreement. The Public Service Stability Agreement 2018-2020 contains proposals for:

- a 7.25% increase over the period of the agreement for those earning less than €30,000 per annum

- a 6.75% increase over the period of the agreement for those earning between €30,001 and €32,000 per annum, and

- a 5.75% increase over the period of the agreement for those earning over €32,000 per annum.

The proposals have been presented to the Permanent Defence Force Representative Associations who participated in the negotiation process. They are subject to ballot by members of the Associations.

Future remuneration of Defence Forces personnel will continue to be dealt with within this process.