Pensions levy to hit public sector overtime

OVERTIME earnings of teachers, nurses, gardaí and other public servants will be subject to the Government’s pension levy aimed at cutting €1.4 billion from the public payroll.

Finance Minister Brian Lenihan said yesterday that public service pay increases will be looked at again in 2011 “without prior commitment” after the freezing of the next two pay rises due under the Social Partnership agreement.

He also confirmed that overtime and other non-pensionable items of public servant salaries will be subject to the levy of between 3% and 9.6% announced on Tuesday.