The Minister for Public Expenditure and Reform, Brendan Howlin, T.D. has announced the introduction of pay ceilings for higher posts across the public service and for CEO posts in Commercial State Companies. The Minister considers that CEO pay will be reduced in a proportionate manner to include—
a general pay ceiling of €200,000 for future appointments to higher positions across the public service;
a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies.
While the above provisions will apply to new appointments to posts, the Government has given detailed consideration to the potential legal and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents (other than the Judiciary) whose salaries are in excess of the proposed salary ceilings. The Government has decided to seek, in the first instance, voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the proposed pay ceiling of, €200,000 for the public service and €250,000 for CEOs of Commercial State Companies.
In imposing the pay ceilings for new appointees, the Government recognises that in a small number of cases exceptions may be necessary. Such exceptions will be limited to instances where the exception is for a role of substantial importance in the public service or a Commercial State Company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exceptions are subject to the prior approval of the Minister for Public Expenditure and Reform.
A review of the current system of Performance Related Award Schemes for CEOs of Commercial State Companies in conjunction with Departments with Commercial State Companies under their aegis to consider whether it would be appropriate to amend the operation of the Schemes and to provide for more direct input and oversight by Ministers is also proposed.
The NTMA and the entities in the NTMA group (State Claims Agency, National Pensions Reserve Fund, National Development Finance Agency and National Assets Management Agency) are not covered by caps on salary.