Public servants will get a 6.5 percent pay rise for backing the deal

Civil servants will get an extra 6.5 percent in pay rises when they back a revised €1.4 billion pay package on Friday.

Underpaid employees would benefit from a larger 7.8 percent pay rise under the updated deal.

The deal was negotiated after unions kicked off talks due to pressure on the cost of living.

Officials have already received pay increases under the existing Building Momentum agreement, which began last year.

If these are added, the total benefit for most public servants would be 9.5 percent.

According to government documents, the low earners would receive 12.5 percent over the course of the three-year contract.

TDs whose salaries are linked to civil servants will increase their salaries to 108,000 euros.

The deal also says 12,000 managers of caregivers should get an immediate additional 3 percent pay rise.

Politicians and civil servants are also entitled to a lump sum if the deal is ratified, as a 3 percent pay rise is retroactive to last February.

The additional pay increases will add €1.6 billion to the €1.1 billion of the original Building Momentum deal – bringing the total to €2.7 billion.

Union leaders from the Public Services Committee of the Irish Trades Union Congress will meet today to announce the outcome of a collective decision on whether to reject or accept the package.

If the deal goes through, its members will receive: a 3 percent pay rise retroactive to February 2 this year; a 2 percent pay rise on March 1 next year; and a 1.5 percent pay increase, or €750, whichever is greater, on October 1 next year.

A spending report for Budget 2023 says the proposed extension of the deal through the end of next year acknowledges a higher-than-expected rate of inflation.

“This agreement has worked well in ensuring the continued delivery of quality public services and the maintenance of industrial peace,” it said.

The proposal to extend the deal amounts to additional increases of 6.5 percent over 2022 and 2023.

“This is in addition to the 3 already foreseen under the existing agreement,” it said.

The estimated total cost of the new proposals is 1.6 billion euros in 2022, 2023 and 2024.

This figure does not include the impact on public sector pensions, which increase with pay increases.

Spending on public sector salaries is expected to rise to more than €22.7 billion next year, an increase of over €800 million, or 3.5 percent.

Meanwhile, Parliament’s Budget Office says the new public sector wage proposal agreed in August would impose “significant additional costs” on the treasury in 2023.

But it says the public sector gross payroll fails to reflect that a significant portion is immediately reclaimed from the Treasury, mostly through income tax. Public servants will get a 6.5 percent pay rise for backing the deal

Fry Electronics Team

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