Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, a broad range of factors, of which accommodation costs is only one, influences staff recruitment and retention. As a result of Ireland's robust economic growth, unemployment is low and labour market conditions are tight. Labour and skills shortages are presenting recruitment and retention challenges for employers across the labour market, including the civil and public service.

Despite this, staff numbers in the public sector have continued to grow consistently. Between 2015 and Quarter 3 of 2023, the most recent data available to my Department, overall estimated public service numbers in full-time equivalent terms increased by almost twenty-nine percent , from 302,000 to 389,070. Staff numbers are estimated to increase to 407,000 in 2024, an increase of almost 8 percent over the two-year period from end-2022.

The public service is a good employer and continues to offer competitive pay and other terms and conditions to attract and retain staff, including flexible working arrangements, pension provision and secure employment. In the case of recruitment policy in the civil service, for which I have policy responsibility, my Department works closely with the Public Appointments Service and other Government Departments to achieve the objectives set out by the Civil Service Renewal 2024 Action Plan to ensure that the State remains an employer of choice.

In relation to remuneration, pay in the public service has been governed by a system of collective agreements since the negotiation of the Croke Park Agreement in 2010.

Proposals for a new public service pay agreement – A Public Service Agreement 2024 to 2026 was reached at the Workplace Relations Commission (WRC) on 26 January 2024. Public service unions and staff associations are expected to ballot on these proposals in the coming weeks.

The Agreement runs for two and a half years and the total cost amounts to €3.6 billion.

In total, the Agreement provides for increases of 10.25% over a two and a half year period. This is made up of general round increases totalling 9.25%, as well as a provision for a Local Bargaining mechanism equivalent to 1% of the basic pay cost.

This Agreement, like its predecessor, is 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

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.

2025

• 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.

2026

• A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 February 2026.

The Agreement also provides for a new local bargaining process that will enable employers and grades, groups and categories of public servants to address issues involving changes in structures, work practices or other conditions of service. The Local Bargaining provision of 1% will be implemented in September 2025.