Joe Higgins
Question:17. Deputy Joe Higgins asked the Minister for Public Expenditure and Reform his plans to reverse the pay cuts for lower-paid public servants as promised under the Croke Park agreement. [42068/14]
View answerThursday, 6 November 2014
Questions (17)
Written answers
In relation to the pay and pension reductions imposed on public servants through the Financial Emergency Measures in the Public Interest Acts 2009-2013, the reductions were progressively structured so it is those on lower incomes who are least affected, with the highest reductions imposed on the highest paid. Significantly, the most recent pay reduction effected by the Financial Emergency Measures in the Public Interest Act 2013, was confined to those public servants on annual salaries of €65,000 or more only, and the core pay of almost 87% of public servants was not impacted by this pay reduction.
The Deputy will be aware that in seeking the most recent savings and reductions from the public service pay and pensions bill, public service employers and trade unions entered into negotiations and concluded a collective agreement, the Haddington Road Agreement. This three year Agreement, effective from July 2013, built upon and reaffirmed the existing overall commitments in the Public Service Agreement (Croke Park Agreement) including those in relation to lower paid public servants and sets the terms of pay in the public service until 2016.
As provided for in the Haddington Road Agreement, and subsequently legislated for in the Financial Emergency Measures in the Public Interest Act 2013, the rate of PRD on the €15,000 to €20,000 band of pay received in a year was reduced from 5% to 2.5% on 1 January 2014. This rate cut is worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost.
The public service unions have indicated their intention, should the State's financial circumstances permit, to lodge a pay claim next year. If such a claim is made, the Government will of course have to consider it, in line with the prevailing fiscal position. As I have already stated, the legal position concerning the financial emergency legislation, which has underpinned the reductions to date, will also have to be addressed as part of putting in place more normal pay setting arrangements in the public service for the future.
Finally my colleague the Minister for Business and Employment is currently developing proposals to implement the Government programme commitment to establish a Low Pay Commission (LPC) on a statutory basis as an independent body to make annual recommendations to the Government about the appropriate level of the minimum wage and related matters.
I would anticipate that the Commission would also have to take into account low paid public servants as part of their considerations.