Written answers
Thursday, 8 February 2024
Department of Public Expenditure and Reform
Public Sector Pay
Alan Dillon (Mayo, Fine Gael)
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108. To ask the Minister for Public Expenditure and Reform to provide an update on the new public sector pay agreement talks; and if he will make a statement on the matter. [5729/24]
Paschal Donohoe (Dublin Central, Fine Gael)
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I welcome the proposed agreement that was made at the WRC two weeks ago, following a challenging set of discussions. In my view, it is an Agreement that seeks to achieve a balanced approach to public service pay that rewards the ongoing efforts of public servants, while ensuring the responsible management of public finances. This has been Government’s ambition throughout this process.
The Agreement runs for two and a half years and the total estimated cost amounts to €3.6 billion. In total, the Agreement provides for increases of 10.25% over the two and a half year period. This is made up of general round increases totaling 9.25%, as well as a provision for a Local Bargaining mechanism equivalent to 1% of the basic pay cost.
The following pay adjustments will apply over the lifetime of this Agreement.
2024
- A general round increase in annualised basic salary for all public servants of 2.25% or €1,125, whichever is greater, on 1 January 2024.
- A general round increase in annualised basic salary for all public servants of 1% on 1 June 2024.
- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2024
- A general round increase in annualised basic salary for all public servants of 2% or €1,000, whichever is greater, on 1 March 2025.
- A general round increase in annualised basic salary for all public servants of 1% on 1 August 2025.
- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 February 2026.
This Agreement, like its predecessor, is heavily weighted towards lower paid public servants. Over the lifetime of the agreement, the lowest paid public servants will see cumulative benefits of up to 17.3%, inclusive of the local bargaining provision. This is a progressive approach, which ensures that those who are most vulnerable to inflation and cost of living issues will see the greatest increase in their pay.
Transformation of our public services remains a key priority for Government. This Agreement will ensure continued support for the delivery of the Government’s key national reform plans, strategies, and frameworks. In particular, this Agreement seeks to support the framework for transformation as set out in “Better Public Services – The Public Service Transformation 2030 Strategy”.
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