The Department of Public Expenditure and Reform has responsibility for the development and implementation of Government public service pay policy. Currently the Financial Emergency Measures in the Public Interest Acts of 2009-2013 and the Public Service Stability Agreement 2013-2016 (Haddington Road Agreement) define current pay policy, within the context of meeting the requirements to reduce the overall public service paybill in line with the commitments made in the Memorandum of Understanding with the EU/IMF.
Financial Emergency Measures in the Public Interest Bill 2015
The Government has published approved text of new legislation to give effect to the provisions of the Lansdowne Road Agreement. The Financial Emergency Measures in the Public Interest (FEMPI) Bill 2015 proposes amendments to the existing FEMPI legislation, which has underpinned the various public service pay and pensions reductions since 2009. This Bill in turn underpins the Lansdowne Road Agreement which secures the efficiencies, enhanced performance and accountability of the earlier Agreements as well as commencing the process for the partial restoration of public service pay. The agreed phased and careful restoration of remuneration to public servants, focussing on those lower-paid, is part of the prudent approach of the Government in managing the ongoing improvements in public finances. In addition, the Bill contains provisions to regularise the position with regard to the arrangements for remuneration of members of the Judiciary.
The legislation will be brought before the Houses of the Oireachtas to ensure that it will be operational in time to effect the necessary changes and form part of the Budget 2016 calculations.
Lansdowne Road Agreement
To view the text of the draft Lansdowne Road Agreement (also known as the draft Public Service Stability Agreement 2013 – 2018), issued by the Labour Relations Commission on 29 May 2015 following discussions between representatives of the Government and of public service staff, please click here. You can read the Irish language version of the draft Agreement here.
This draft, if approved, will cover the period to September 2018. The relevant unions will now consider their approaches to balloting on the draft Agreement. If approved, legislation to amend the FEMPI Acts 2009 – 2013 will be required by the end of the year. To view the impact of pay proposals for public servants, please click here.
Click here to view Frequently Asked Questions (FAQs). These FAQs relate to the overarching provisions in the Lansdowne Road and Haddington Road Agreements.
Financial Emergency Measures in the Public Interest Act 2009
The purpose of the Financial Emergency Measures in the Public Interest Act 2009 was to introduce a number of financial emergency measures in the public interest. These measures were the making of a new deduction from the remuneration of public servants who are members of a public service pension scheme or who are entitled to a benefit under such a scheme or receive a payment in lieu of membership; provisions to allow public bodies to reduce the professional fees paid by them to external service providers; changes in the early childcare supplement and in the Farm Waste Management Scheme.
Financial Emergency Measures in the Public Interest (No 2) Act 2009
This Act provided for reductions in public service pay with effect from 1 January 2010. The rate of reduction varied by salary level but amounted to an average of around 6.5%.
Financial Emergency Measures in the Public Interest Act 2010
This Act provided for a further reduction to the remuneration of members of the Government. The Act also provided for a reduction to the amounts payable by way of pension to retired public servants.
Financial Emergency Measures in the Public Interest (Amendment) Act 2011
This Act provided for the reduction of judicial pay and pensions, following a constitutional amendment. The Act also further reduced the pay of members of the Government, whose members had voluntarily reduced their pay upon taking office, prior to this legislation coming into force.
Financial Emergency Measures in the Public Interest Act 2013
This Act provided for a reduction in remuneration for public servants earning more than €65,000, and a further reduction in the amount paid to those in receipt of a public service pension in excess of € 32,500. The Act also provided for a suspension of incremental progression until 2016 for all public servants, unless they are covered by a collective agreement modifying the terms of the incremental suspension which has been registered with the Labour Relations Commission.
Section 12 of the Financial Emergency Measures in the Public Interest Act 2013 obliges the Minister of Public Expenditure and Reform to carry out a review of the operation, effectiveness and impact of the Financial Emergency Measure in the Public Interest Acts, having regard to the overall economic conditions in the State and national competitiveness. The latest report of the findings of the review relating to the reductions in pay is available here.
Public Service Stability Agreement 2013-2016 (Haddington Road Agreement)
In 2013, following extensive negotiations, agreement was reached with a number of unions representing public service workers on a range of reform and productivity measures. Collectively, these sectoral agreements are referred to as the Haddington Road Agreement. The Agreement and accompanying FAQs are available at the link below:
Exchequer Pay Bill
Details of the Estimated Exchequer Pay Bill are published in the Revised Estimates for Public Services 2013.