Latest public pay hikes ‘pose a challenge’

The latest public pay increases have not been budgeted for and will pose a “significant challenge”, politicians have been told.

Department of Finance secretary general Derek Moran said there are concerns about where the extra cash to fund a promised pay increase will come from.

Public Expenditure and Reform Minister Paschal Donohoe announced this week that his department is to bring forward a €1,000 pay rise to workers who come under the Lansdowne Road deal and earn up to €65,000.