Here’s everything you need to know about today’s public sector pay deal

Here’s everything you need to know about today’s public sector pay deal

The Government and public service unions have reached a draft agreement on a pay deal to succeed the Lansdowne Road Agreement.

Almost 250,000 public sector workers recruited before 2013 are set to receive pay hikes of between 6.2% and 7.4% over the next three years.

The proposed three-year deal to replace the Lansdowne Road deal will cost €180m in the first year.

Key points of the deal

* The new three-year deal will run from January 1, 2018 - December 31, 2020 and will cost €887m over this time.

* Depending on income, those in the public sector will see their wages increase from between 6.2% and 7.4% over the three years, with 73% of public servants gaining more than 7% by 2020.

* By 2020, more than 90% of public servants will be out of FEMPI pay provisions, and almost a quarter will have exited FEMPI pension levy payments.

* Pay restoration will be carried out on a phased basis over the lifetime of the agreement:

January 1, 2018: 1% pay adjustment

October 1, 2018: 1% pay adjustment

January 1, 2019: Pension levy threshold up from €28,750 to €32,000 (worth €325pa)

January 1, 2019: 1% pay adjustment for those earning less than €30,000

September 1, 2019: 1.75% pay adjustment

January 1, 2020: Pension levy threshold increased to €34,500 (worth €250pa)

October 1, 2020: 2% pay adjustment

* A new Additional Superannuation Contribution (ASD) will replace the pension levy.

* ASD will be paid by any public servant who earns more than €34,500. It will be on average 10% of their earnings above €34,500.

* The new pension levy will not be applicable to non-pensionable earnings, including overtime.

* Government will take in €550m from this new permanent pension contribution, compared to the €700m generated from the current pension levy.

* The combination of pay and pension levy adjustments will be worth 7.4% to those earning €30,000 a year or less, over lifetime of deal.

* For those earning between €50,000-€55,000 a year, the combination of pay and pension levy adjustments will be worth 7% over lifetime of deal.

* Those on wages between €55,000-€80,000 will see pay and pension levy adjustments worth between 6.6% and 6.9%.

* There will be no change in working hours, but employees will be given the option to revert to pre-Haddington Road hours if this does not impact on front-line services. However, this will mean a relevant reduction in pay.

* There will be no extension of Saturday working. However, there will be a review of rostering arrangements for groups, but no change without agreement.

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