€250k cap on public sector pay

THE days of senior public servants, including the President, earning more than 10 times the average industrial wage are to be brought to an end.

Brian Lenihan confirmed the Government’s intention to introduce a maximum salary rate of €250,000 in the public sector. And the Finance Minister said that maximum should also apply in the semi-state sector where the massive pay packets were particularly prevalent. “Only a few office-holder posts have salaries above this level at present, but there is a larger number in the state agencies.”

As reported in the Irish Examiner earlier this week, there are a large number of semi-state heads earning in excess of €250,000, including HSE chief executive Cathal Magee (€335,913) and Frank Gannon of Science Foundation Ireland (€259,698).

After showing great reluctant to part with up to 10% of their pay through an income levy, a number of judges are also to face cuts.

“The 10% reduction in the pay of new entrants to the public service contained in the National Recovery Plan will be applied to the salary rate of those appointed to hold office in the Judiciary in 2011,” said Mr Lenihan yesterday. “The €250,000 maximum will be applied to all such offices.”

However, it is understood that even though RTÉ is a semi-state body, its high earning presenters such as Ryan Tubridy and Pat Kenny will avoid the €250,000 cap due to the way their contracts are structured.