Pearse Doherty (Donegal, Sinn Fein)
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255. To ask the Minister for Public Expenditure and Reform the net cost to the exchequer of a 1% increase in the public sector pay agreement; and if he will make a statement on the matter. [40538/25]

Jack Chambers (Dublin West, Fianna Fail)
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The Revised Estimates Volume for 2025 set out a gross Exchequer pay bill of €28.0 billion for 2025, which is just under one third of Gross Current Expenditure.

The total public service pay bill, including Local Authorities, is estimated to be approximately €30.1 billion in 2025. Based on this, the estimated gross cost of a 1% increase in the public service pay bill is approximately €0.3 billion, excluding any associated pension impacts.

It is difficult to estimate with any degree of accuracy the net cost of the pay bill as the impact of taxation varies depending on each employee’s individual tax, PRSI, and USC treatment.