The Department of Public Expenditure and Reform has responsibility for the development and implementation of Government public service pay policy.
Currently the Financial Emergency Measures in the Public Interest Acts of 2009-2013 and the Public Service Stability Agreement 2013-2016 (Haddington Road Agreement) define current pay policy, within the context of meeting the requirements to reduce the overall public service paybill in line with the commitments made in the Memorandum of Understanding with the EU/IMF.
Financial Emergency Measures in the Public Interest Act 2009
The purpose of the Financial Emergency Measures in the Public Interest Act 2009 was to introduce a number of financial emergency measures in the public interest. These measures were the making of a new deduction from the remuneration of public servants who are members of a public service pension scheme or who are entitled to a benefit under such a scheme or receive a payment in lieu of membership; provisions to allow public bodies to reduce the professional fees paid by them to external service providers; changes in the early childcare supplement and in the Farm Waste Management Scheme.
Financial Emergency Measures in the Public Interest (No 2) Act 2009
This Act provided for reductions in public service pay with effect from 1 January 2010. The rate of reduction varied by salary level but amounted to an average of around 6.5%.
Financial Emergency Measures in the Public Interest Act 2010
This Act provided for a further reduction to the remuneration of members of the Government. The Act also provided for a reduction to the amounts payable by way of pension to existing or former public servants.
Financial Emergency Measures in the Public Interest (Amendment) Act 2011
This Act provided for the reduction of judicial pay and pensions, following a constitutional amendment. The Act also further reduced the pay of members of the Government, whose members had voluntarily reduced their pay upon taking office, prior to this legislation coming into force.
Financial Emergency Measures in the Public Interest Act 2013
This Act provided for a reduction in remuneration for public servants earning more than €65,000, and a further reduction in the amount paid to those in receipt of a public service pension. The Act also provided for a suspension of incremental progression until 2016 for all public servants, unless they are covered by a collective agreement modifying the terms of the incremental suspension which has been registered with the Labour Relations Commission.
Section 12 of the Financial Emergency Measures in the Public Interest Act 2013 obliges the Minister of Public Expenditure and Reform to carry out a review of the operation, effectiveness and impact of the Financial Emergency Measure in the Public Interest Acts, having regard to the overall economic conditions in the State and national competitiveness. The latest report of the findings of the review relating to the reductions in pay is available here
Public Service Stability Agreement 2013-2016 (Haddington Road Agreement)
In 2013, following extensive negotiations, agreement was reached with a number of unions representing public service workers on a range of reform and productivity measures. Collectively, these sectoral agreements are referred to as the Haddington Road Agreement.
The Agreement and accompanying FAQs are available at the link below:
Exchequer Pay Bill
Details of the Estimated Exchequer Pay Bill are published in the Revised Estimates for Public Services 2013.