About 340,000 Irish Public Servants are to receive pay increases of two per cent from the beginning of October.
In addition, the Government is obliged under legislation to reverse, for higher-earning staff, remaining cuts that were imposed under financial emergency legislation (Fempi) after the Global Financial Crisis eight years ago.
The Department said in a statement that the Minister had to “provide for completion of pay restoration to Public Servants paid an annual basic salary of €150,000 ($A247,700) or less on any date between 2 October and 1 July, 2021”.
“The current estimate of the full-year cost of this measure is approximately €42 million ($A69 million),” the statement said.
The Department declined to say when exactly the payments would be made.
The Government has already signalled it would give all Public Servants a two per cent pay rise in October — the final payment arising from the current pay deal.
It is also holding preliminary talks with unions about the potential for a new deal to succeed the current agreement, which expires at the end of the year.
It is believed the Government wants any deal to include a zero pay increase in 2021 to allow recovery from the COVID-19 pandemic.
However, even if there were to be no increases as part of any new deal in 2021, the Government’s Public Service pay bill would still increase by more than €300 million ($A495 million).
This would stem from carry-over costs from the pay rise to come into effect in October, and other commitments including the reversal of the Fempi cuts.
Dublin, 26 September 2020
