Public Sector Agreement: Over 200,000 public sector retirees have opted for increases under the revised agreement

More than 200,000 public sector retirees will be hired for increases worth 4 percent this year after a government review of pay agreements triggered by rising inflation.

Public Expenditure and Reform Secretary Michael McGrath confirmed that pensioners will also benefit from a lump sum as one of the increases is retroactive to February this year.

He said the revised Building Momentum deal was “affordable and fair” and acknowledged higher-than-expected inflation rates since last year.

As part of the existing agreement with the government, a pay increase of 1 percent is to be paid to over 370,000 civil servants starting today.

Another 3 percent will be paid if a proposed review of the deal is accepted in the union’s votes, which end next week.

Most public sector retirees get the raises as their pensions grow with pay increases, a system known as wage parity.

They would also be entitled to further increases to be paid to staff as part of the proposed review next year.

These are a 2 percent increase on March 1 and a 1.5 percent increase on October 1.

Public sector unions are expected to approve the revised agreement next Friday.

“I recently approved the application of increases for public sector pensioners who started employment before 2013, in line with adjustments to the pay scales of existing staff for the remainder of the agreement,” the minister said.

“Over 200,000 people who receive public sector pensions will benefit from this wage parity provision.

“Retirees would also benefit from the backdating element to the 3 percent increase this year.”

The minister noted that the final installment of 1 per cent of the current salary agreement is due today. Low earners get a surcharge of 500 euros.

“In the difficult inflationary environment we are currently experiencing, public officials will welcome the payment of the October 1 installment of the current Building Momentum agreement,” he said. “This is the last increase envisaged under the existing agreement.

“As we all know, negotiations concluded at the end of August on a proposed extension of the agreement which, if ratified by public sector unions, would result in a 3 percent increase in annual base salaries retroactive to February 2, 2022 and beyond increases in 2023.”

He said approval of the proposed deal would provide certainty about public service pay and ensure the continued delivery of essential services.

“I look forward to completing the voting process and implementing the agreed increases if the deal is ratified,” he added. Public Sector Agreement: Over 200,000 public sector retirees have opted for increases under the revised agreement

Fry Electronics Team

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