Dáil Éireann Debate, Wednesday - 1 July 2015
85. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the annual saving to the Exchequer if all public sector salaries, gross and net, excluding hospital consultants on over €100,000, were reduced as follows: full-year amount of remuneration for any amount over €100,000 but not over €150,000; a reduction of 15%; and a full-year amount of remuneration for any amount over €150,000, a reduction of 30%. [26609/15]
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 €11.2m. This 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 €4.2m.
