Wednesday, 20 January 2021

Questions (169)

Mairéad Farrell

Question:

169. Deputy Mairéad Farrell asked the Minister for Public Expenditure and Reform the cost of the new public service stability agreement; and if he will make a statement on the matter. [2285/21]

View answer

Written answers (Question to Public)

"Building Momentum: A New Public Service Agreement, 2021 - 2022", is a 2 year agreement and will cost an estimated €906m spread over three calendar years - 2021, 2022, and 2023. This is the equivalent of under 4% of the estimated 2021 public service pay bill, in respect of 367,300 public service staff.

The text of the Agreement can be found at the following link:

https://www.gov.ie/en/publication/e9d23-building-momentum-a-new-public-service-agreement-2021-2022/

The principal features of the agreement include:

- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2021.

- The equivalent of a 1% increase in annualised basic salaries on 1 February 2022 to be used as a Sectoral Bargaining Fund.

- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2022.

The agreement is heavily weighted towards those on lower incomes with headline increases of approx. 5% for the lowest paid public servants, who will also benefit from other measures in the Agreement including the overtime rates and premia payments adjustments.

The Agreement builds on the momentum of reform and change exemplified by the public service during this public health emergency and allows for on-going co-operation with change and productivity improvements and industrial peace until 2022.

We have committed to making progress on the issue of Haddington road hours through the work of an independent body and €150m of the total has been allocated in 2022 to deliver on any recommendations. We are addressing the remaining salary scale issues for teachers who started over the last decade. We have also strengthened the provisions that underpin industrial peace – an essential ingredient in the recovery of our economy post Covid.

It is my clear view that at the end of this agreement period we will have a stronger, more responsive public sector delivering vital services for the entire country.