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Departmental Expenditure

Dáil Éireann Debate, Thursday - 16 July 2015

Thursday, 16 July 2015

Questions (197)

Denis Naughten

Question:

197. Deputy Denis Naughten asked the Minister for Finance the cost in 2013 and 2014 of issuing hard copy payslips to staff or retired staff by his Department and agencies under the control of his Department; and if he will make a statement on the matter. [30055/15]

View answer

Written answers

The information requested in respect of my Department is set out in the following table:

2013

Postage

€84,882.25

Payslips purchased

€5,332.05

Machinery maintenance

€4,840.78

Total

€95,055.08

2014

Postage

€55,123.92

Payslips purchased

€5,243.49

Machinery maintenance

€4,840.78

Total

€65,208.19

Most of the costs are attributable to pension payment activity. An Post's bulk discount postal rates were used where they were available.  The figures above do not include the following: stocks of payslips on hand at year end; costs of issuing P60s to pensioners; costs of staff operating machinery used to prepare the payslips for issue. Much of the higher costs in 2013 reflects additional issues of payslips due to the reductions in pensions arising from the Haddington Road Agreement, as well as some additional targeted mailshots to payees in relation to developments in the pension payment service.

Prior to the transfer of the activity to the new Payroll Shared Service Centre in September 2014, my Department supplied a payroll service on an agency basis to a number of Departments and Offices and for salaries charged to the Central Fund. Online payslips were available to staff obviating the need to produce hard copy versions. However, hard copy payslips would have issued in particular circumstances, for example, to staff absent on maternity leave and staff of certain client Departments who did not have access to online payslips.

The Office of the Paymaster General, which is part of my Department, provides a pension payment service for: retired civil servants paid from the Superannuation Vote; retirees of various other State bodies and programmes; pensioners paid from the Central Fund. There are currently over 32,000 pensioners in payment. The automatic issue of a payslip with every fortnightly pension payment ended in November 2012. New arrangements were put in place whereby hardcopy payslips are only posted to all pensioners for the final pension payment of the year and for the first payment of the new year. In addition, a payslip is posted to a pensioner where his/her net pension payment changes by more than €7.50 compared to the amount paid to him/her in the previous fortnight. An online payslip has also been made available to pensioners. It is estimated that these new arrangements save my Department approximately €450,000 per annum.

The pension payment activity is due to transfer from my Department to the Payroll Shared Service Centre in September 2015.

The position in respect of the agencies under my Department is as follows:

The Office of the Comptroller and Auditor General:

The cost of issuing hard copy payslips to staff was  €2,509.12 in 2013 and €2,696.68 in 2014.

Revenue:

I am advised by Revenue that the estimated cost of issuing hard copy payslips to Revenue employees was €1,700 in 2013 and €1,700 in 2014.  Revenue's policy is that all staff receive their payslips electronically. The only exception is in a small number of cases where the individuals do not have access to the payroll system, for example during maternity leave or long term sick leave.

Central Bank of Ireland:

Information in relation to the Central Bank of Ireland is not to hand. I will forward it to the Deputy as soon as possible.

National Treasury Management Agency (including National Asset Management Agency and Strategic Banking Corporation of Ireland):

The NTMA outsources the provision of payroll administration services to a third party service provider - currently PwC.  While hardcopy payslips are supplied, this is part of the overall service provided and no service fee reduction would accrue from a switch to a soft copy service.

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