Budget reveals range of pay cuts in public sector pay

The Finance Minister Brian Lenihan has announced a range of cuts in the public sector in his Budget speech.

The cuts range from a 5% cut on the first €30,000 earned, up to a 15% on those earning more than €200,000.

The cuts in public service pay will be as follows:

5% on first €30k of salary

7.5% on next €40,000 of salary

10% on next €55,000 of salary

Higher public servants:

8% to those on €125,000 to €165,000

12% to those €165,000 to €200,000

15% to those earning above €200,000

Brian Lenihan today tried to comfort the nation as he unleashed his punishing Budget with a promise that the worst was over.

Confirming an unprecedented €4bn cost-cutting package, Mr Lenihan admitted Ireland had been shaken by the dramatic collapse of its economy.

But he insisted the country was now turning a corner and Irish people would not have to suffer such a punishing Budget again.

“The effort demanded of every citizen in this Budget is substantial, but it is the last big push of this crisis,” he said.

“Further corrections will be needed in the coming years, but none as big as today’s.”

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