Bernard Durkan (Kildare North, Fine Gael)
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227. To ask the Minister for Public Expenditure and Reform his plans in respect of public service pay in the future in the context of ensuring fair and equitable recognition throughout the public sector while at the same time protecting structured reform and adequate recognition of need throughout the public sector with particular reference to the lower paid; and if he will make a statement on the matter. [45876/21]

Michael McGrath (Cork South Central, Fianna Fail)
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Building Momentum – A New Public Service Agreement 2021-2022 (hereinafter referred to as the “Agreement”) provides for the following pay adjustments:

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

- The equivalent of a 1% increase in annualised basic salaries to be used as a Sectoral Bargaining Fund, in accordance with Chapter 2 of the Agreement, on 1 February 2022.

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

These increases in annualised basic salaries are heavily weighted towards those at lower incomes with headline increases of approx. 5% for the lowest paid public servants. These groups will also benefit more from other measures in the Agreement including the overtime rates and premia payment adjustments.

Public servants who are due an amount of pay restoration in 2021 or 2022, under Section 19 and 20 of the Public Service Pay and Pensions Act 2017, respectively, will not receive the general round increase in that year. However, if the amount of restoration due is less than the general round increase, they will be paid the balance on the date of the general round increase.

Currently, public servants with salaries under €150k have been restored to pre-FEMPI levels (as of 1 July 2021). Those earning above €150k are due to be restored by 1 July 2022.

Building Momentum represents a strong commitment to continuing reform in the public service. The provisions that underpin industrial peace are strengthened by the Agreement – an essential ingredient in the recovery of our economy post Covid. Building on the momentum of reform and change exemplified by the public service during this public health emergency, the Agreement allows for on-going co-operation with change and productivity improvements and industrial peace until 2022. It supports structured reform on a sectoral level and sectoral bargaining relates to negotiations within sectors to progress reforms and resolve issues between the parties.