In June 2011, the Government announced the introduction of pay ceilings for higher posts across the public service and for CEO posts in Commercial State Companies. As part of these measures, the Government also decided to seek, in the first instance, voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the proposed pay ceiling of €200,000 for the public service and €250,000 for CEOs of Commercial State Companies.
Within the HSE, the then CEO came within the terms of the Government Decision. The HSE made contact with my Department directly on 27 June 2011, to indicate that the CEO would make a voluntary waiver of 15% of his salary. The necessary formal arrangements were put in place to apply the waiver with effect from July 2011. No cases of non-acquiescence to this waiver arose in the HSE.
Apart from the HSE, no CEO/staff members in the non-commercial agencies under the remit of the Department received salaries in excess of €200,000.
The Decision did not apply to medical consultants, as a separate process in relation to their salaries and working practices was under consideration.
The VHI is the only commercial agency under the aegis of the Department. Accordingly, in July 2011, the Department wrote to the Chair requesting that relevant staff be asked to comply with the request for the voluntary waiver. The VHI response to the Department in October 2011 indicated that no voluntary waivers of salary would be made by any staff member. No member of staff of the Department of Health currently receives a salary in excess of €200,000 per annum. However, the annual salary of the former Secretary General of the Department, who retired on April 8th, 2012, was in excess of €200,000 but a voluntary surrender brought his annual salary below the €200,000 figure.
