The process of unwinding the Financial Emergency (FEMPI) legislation commenced under the Lansdowne Road Agreement 2016 – 2018 and will be completed under the Public Service Stability Agreement 2018 – 2020 (PSSA).
The PSSA, which was negotiated in 2017, and the provisions of which were statutorily provided for under the terms of the Public Service Pay and Pensions Act 2017, allows for a continued, controlled unwinding of the FEMPI legislation. The unwinding process is progressively weighted towards those at the lower levels of pay (who will see their salaries increase relative to 2008), and is implemented on a phased basis.
By end 2019, salary rates up to €50,000 will be fully restored. By end 2020, salary rates up to €70,000 (over 90% of the public service) will be fully restored.
For public servants who have not achieved full restoration of the FEMPI reductions by October 2020 (i.e the date of the last PSSA increase), restoration of the amount must be completed by way of Ministerial order. This order must be made on the following dates:
For those with a post – PSSA salary of under €150,000:
- Covered public servants: a date after 1 October 2020 but before 1 July 2021.
For those with a post – PSSA salary in excess of €150,000:
- Covered public servants: a date after 1 October 2020 but before 1 July 2022
Under the terms of the FEMPI Act 2013, I am obliged to carry out an annual review of the operation, effectiveness and impact of the FEMPI Acts, having regard to the overall economic conditions in the State and national competitiveness. In this annual review, I am also to consider whether or not any of the provision of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions.
In my 2019 annual review, a written report of which was laid before the Houses of the Oireachtas on the 26th June, I recommended the continuation of the unwinding of the FEMPI measures in line with the terms agreed under the Public Service Stability Agreement 2018 – 2020 and provisions enacted in the Public Service Pay and Pensions Act 2017.