Wednesday, 27 February 2013

Questions (15)

Mary Lou McDonald


15. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the saving to the Exchequer if all annual public sector pay, to include local authorities and State agencies, was capped at €100,000. [10428/13]

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Written answers (Question to Public)

I refer to my replies to Questions Nos. 162, 163, 166, 167 and 171 of 8 November 2012.

The estimated full year gross saving in the Exchequer and Local Government pay bill arising from a cap of €100,000 is €290m. The estimate takes account of the reductions in pay arising from the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, but does not take account of any offsetting reductions in taxes and levies. As the combined effect of the estimated marginal tax rate and the pension related reduction at a pay level for a public servant of €100,000 p.a. or higher is at least 62.5%, the estimated net savings would be reduced to less than €110m.