Written answers

Wednesday, 20 January 2021

Department of Public Expenditure and Reform

Public Sector Pay

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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168. To ask the Minister for Public Expenditure and Reform if he will respond to a query (details supplied); and if he will make a statement on the matter. [2189/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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The process of unwinding the Financial Emergency (FEMPI) legislation commenced under the Lansdowne Road Agreement 2016 – 2018 and was largely completed under the Public Service Stability Agreement 2018 – 2020 (PSSA).

To date, salary rates up to €70,000, which accounts for over 90% of the public service, have been fully restored.

While the Agreement expired at the end of 2020, certain measures needed to complete the unwinding of FEMPI will continue over the period 2021-2023 as provided for in the Public Service Pay and Pensions Act 2017. These can be found at Section 19 and Section 20 of the Act at the following link:

Under the terms of the FEMPI Act 2013, I am obliged to carry out an annual review of the operation, effectiveness and impact of the FEMPI Acts, having regard to the overall economic conditions in the State and national competitiveness. In this annual review, I am also to consider whether or not any of the provision of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions.

The 2020 annual review, a written report of which was laid before the Houses of the Oireachtas on 23 June 2020, recommended the continuation of the unwinding of the FEMPI measures in line with the provisions enacted in the Public Service Pay and Pensions Act 2017. This report can be found at the following link:

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein)
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169. To ask the Minister for Public Expenditure and Reform the cost of the new public service stability agreement; and if he will make a statement on the matter. [2285/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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"Building Momentum: A New Public Service Agreement, 2021 - 2022", is a 2 year agreement and will cost an estimated €906m spread over three calendar years - 2021, 2022, and 2023. This is the equivalent of under 4% of the estimated 2021 public service pay bill, in respect of 367,300 public service staff.

The text of the Agreement can be found at the following link:

The principal features of the agreement include:

- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2021.

- The equivalent of a 1% increase in annualised basic salaries on 1 February 2022 to be used as a Sectoral Bargaining Fund.

- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2022.

The agreement is heavily weighted towards those on lower incomes with headline increases of approx. 5% for the lowest paid public servants, who will also benefit from other measures in the Agreement including the overtime rates and premia payments adjustments.

The Agreement builds on the momentum of reform and change exemplified by the public service during this public health emergency and allows for on-going co-operation with change and productivity improvements and industrial peace until 2022.

We have committed to making progress on the issue of Haddington road hours through the work of an independent body and €150m of the total has been allocated in 2022 to deliver on any recommendations. We are addressing the remaining salary scale issues for teachers who started over the last decade. We have also strengthened the provisions that underpin industrial peace – an essential ingredient in the recovery of our economy post Covid.

It is my clear view that at the end of this agreement period we will have a stronger, more responsive public sector delivering vital services for the entire country.

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