New public pay proposals could see staff recruited after 2011 benefit by an average of €3300 pa

New public pay proposals could see staff recruited after 2011 benefit by an average of €3300 pa
Finance Minister Paschal Donohoe

Public servants working on lower pay scales to their colleagues are to be able to jump increment scales to allow their pay catch up.

Ahead of a possible election within the next 12 months, the government is moving to close off one of the thorniest issues facing it.

The Government is to announce today new proposals to close the controversial lower pay arrangements which have existed for about 60,000 staff hired since 2011.

The Irish Examiner understands that the move comes after lengthy discussions between the Government and Fianna Fail ahead of the budget, with the Opposition party demanding action.

It is understood that up to 35,000 public sector staff are to from next year see their pay increase on top of pay increases already committed to.

Under proposals from Finance Minister Paschal Donohoe, the pay of newer entrants to be public service will be increased over a number of years by skipping points on their existing incremental pay scales.

The proposal has been given to trade unions for consideration.

It is understood that the new proposals would come into effect next Spring, those state employees hired since 2011 would jump an increment point on their scale.

By doing this, they will hit the maximum point on the increment scale at a sooner time than is currently the case.

To fix the anomaly overnight, the Government would have to spend €200m, but this is not achievable so the proposal is to deal with this over several years.

The Irish Examiner understands the proposed measures would cost €27m in 2019 and €48m in 2020, which covers the remaining period of the existing public service agreement.

The Government documents state that more than 35,000 public servants hired since 2011 would benefit from this proposal next year.

Those to benefit in 2020 would be 47,750.

In total, 60,000 staff across the public service are affected by the lower pay rates introduced after 2011.

According to the finance report "the cost of a two point adjustment as approximately €200m and the potential benefit to the individual as €3,300 on average."

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