The salaries of the highest paid civil servants will rise by more than €20,000 when cuts imposed during the financial crisis are reversed next week.
Undoing the cuts imposed during the recession will actually cause civil servants’ pay to rise above the rate of inflation.
The annual rate of inflation soared to 7.8% in May, according to figures released by the Central Bureau of Statistics – the highest rate in nearly 40 years.
From now on, the salary of senior hospital consultants will increase by 10% or €22,972 to €252,150 per year, while the salary of the chief justice will increase by 8.9%, from €271,648 to €295,916, a increase of €24,268.
Official figures reveal that the secretaries general of ministries will also benefit from salary increases of 8.9%, bringing their salaries to a range between €211,765 and €250,000.
The first step of the Secretary General’s remuneration will increase by more than €34,000, from €215,998 to €250,000.
However, it is unclear if any Secretaries General are at this level.
University directors, who are currently earning €215,998, will receive a 9% pay rise which will take their salary to €235,594.
A head of a technological university will benefit from a salary increase from €204,630 to €222,911.
Department of Health Secretary General Robert Watt and HSE Chief Executive Paul Reid will not be eligible for the raises as their salaries were set after emergency legislation that slashed wages.
Under the Civil Service Pay and Pensions legislation, “reinstatement” does not apply to the Taoiseach, Tánaiste, Ministers or Attorney General.
The government found it was not legally possible to block increases due on July 1 for people earning more than €150,000, whose wages were first cut more than a decade ago.
A source from the Department of Public Expenditure and Reform said that ahead of the restoration date, Minister Michael McGrath had sought legal advice to determine whether the government had discretion over restoration payments.
He was told that changing or delaying restoration conditions was not permitted under current legislation or through new legislation.
Civil servants receiving annual salaries of up to €150,000 have already seen the cuts fully reinstated.
Figures show that medical consultants at the top of their pay scale on pre-2012 ‘Type A’ contracts will see their pay rise to €252,150, a 10% increase on current levels.
On the other hand, consultants recruited after 2012 on a “type C” contract who can carry out private practice on site and off site will receive an increase of 1.7% up to a maximum of €155,594 per year.
The increase of €2,534 due to these consultants is much lower than what their most senior colleagues will receive.
Salary increases for pre-2012 consultants at the top of their pay scales range from 6.3% to 10% and their salaries after the July increase will range from €183,859 per year to €252,150.
For those hired after 2012, restored pay rates range from €155,954 to €221,765, with increases of 1.7pc to 10pc.
A government source said those who will benefit from the pay restoration this year will not be in line with any ‘cost of living’ wage increases that may be agreed during talks on a review of the current pay deal for the public sector.
Those talks broke down last week.
The government had tabled an offer which meant that civil servants would receive 7pc over two years.
This consists of an additional 5% and two 1% salary increases already agreed as part of the agreement, Building Momentum.
The source said the Finance Ministry’s forecast for inflation is 6.25% this year and 3% next year, so an offer that forecasts 7% over the same period is a “credible position”.
Government sources said they were clear from the start of the talks that they would not pursue inflation and that it was important to avoid measures that would exacerbate inflationary pressures.
They said there are increasing levels of uncertainty in the global economic climate, including rising interest rates, high levels of public debt, inflationary pressures and that a balanced and cautious approach is appropriate.” as recognized by the offer which has been submitted”.
Labor has said the “bitter pill” of restoring public sector wages to the highest paid means must resume now.
“Public sector unions have rightly said they will not return to negotiations until the government has put meaningful proposals on the table,” said Labor employment spokeswoman Marie. Sherlock.
“The government must realize now that it is accumulating a summer of serious discontent if it fails to sufficiently address the difficulties of the real pay cuts currently facing many public sector workers and those who are indexed to wage rates. of the public sector.”
Comments are closed.