Senior public servants should get year's pay when their term ends, review says

Robert Watt moved from the top job in the Department of Public Expenditure to the Department of Health. 

Top civil servants should be given a year's pay or another job when their seven-year term as secretary-general of a department comes to an end, a review has said.

Public Expenditure Minister Paschal Donohoe has published the final report of the Independent Review Panel on Senior Public Service Recruitment and Pay Processes, set up in the wake of Robert Watt's move from the top job in the Department of Public Expenditure to the Department of Health. 

Mr Watt received an €81,000 pay increase when he moved in 2021.

The report says term limits on the role of secretary-general should no longer include an option for a three-year renewal and that seven years should be the maximum.

"In our view, a limit of seven years is appropriate. Consideration should be given to setting this limit in legislation for new hires," the report finds. 

However, it says existing officeholders should retain their three-year extension option. 

The report adds that outgoing secretaries general should be offered a year's salary — up to €255,000 — or a job at their previous level in the civil service.

"The following options should be provided to all new appointments at secretary-general level in the cvil service at the end of their term: a) A payment equivalent of up to one year’s salary be provided; or b) employment at assistant secretary level or previously held grade, whichever is higher, in a different department or agency within the civil or public service."

The report suggests a review be undertaken of the grading of each department's secretary-general. 

However, the report does not suggest any changes to the existing terms and conditions of top civil servants.

Grading review

Speaking at the publication of the document, Mr Donohoe said he was asking the three-person board chaired by Donal de Buitlear to stay in place to carry out the grading review. 

He said the Government had agreed to the establishment of a senior posts remuneration committee that would provide independent advice on pay arrangements for senior posts in the public service and chief executives of commercial State bodies.

Mr Donohoe said a senior posts committee was necessary due to "private sector competition" for talented candidates.

"It is because the private sector contest for the operation of our semi-State bodies has completely changed. We now have a number of semi-State organisations that are really critical to how the State performs and to work that we want to see happen within our country. 

"And the posts within that are now in the context of a really big change in competitive salaries. 

"And because of that, I am concerned that in the absence of an intervention like this, we would end up in a situation where we wouldn't have the best people do the right work for our country. And that's why I believe a decision like this is needed."

Mr Donohoe said no decision had been made as to whether the heads of the Departments of Children and Housing should be paid more.