Dáil Éireann Debate, Wednesday - 18 September 2013
466. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the full year saving to the Exchequer, both gross and net figures, if all public sector salaries, excluding hospital consultants over €100,000 were reduced (details supplied). [38663/13]
View answerBased on the information currently available to my Department, the estimated full year gross saving in the Exchequer and Local Government pay bill arising from a reduction in public service salaries (excluding hospital consultants) for amounts over €100,000 of 15% and amounts over €150,000 of 30% is some €12m. The estimate takes account of the reductions in pay arising from the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, and the Financial Emergency Measures Act 2013, 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 €4.5m.
