The total savings to the Exchequer in 2013 arising from a cap of €100,000 on public service salaries is estimated at €257m. The estimate takes account of the reductions in pay arising from the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, but 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 €100m. The estimate does not include staff of commercial State-sponsored bodies or bodies funded by the State outside the public service since the Minister for Public Expenditure and Reform is not responsible for setting the rate of pay for employees (other than the Chief Executives of the commercial semi-State bodies) outside the public service.
The estimated gross yield from capping Civil Service pensioners only at €50,000 is of the order of €20m and would be less when taxes and levies are taken into account. Data from the wider Public Service would be a matter for the respective line Departments. The wider information sought by the Deputy is not available in my Department nor are there any such proposals.
