Public sector pay cuts U-turn will cost taxpayers €5m

THE U-turn on pay cuts for higher paid public sector workers will cost taxpayers €5 million, the Taoiseach has admitted.

As Fianna Fáil backbenchers backed down on their call to reinstate the full pay cuts for high earners, the Labour Party said the money lost would pay for all the special needs classes that have been slashed.

Those earning more than €125,000 a year were due to take pay cuts of between 8% and 12%, under plans announced in December’s budget. But the Government decided to take into account bonus payments that they have already lost, so their pay reduction will now amount to between 3% and 5% – the same as that being imposed on the lower paid public servants.