I welcome the agreement that has been arrived at today, 29 May 2015, and would like to thank everybody who has been involved in the process. I believe that it strikes the right balance between the legitimate aspirations of public servants for pay recovery and sustaining our improving public finances.

It will secure a peaceful industrial relations environment until September 2018. It reinforces the ongoing commitment of public servants to the wider reform agenda in the public service. It begins the process of unwinding the financial emergency measures in a prudent and sustainable fashion thereby reducing the risk to the sustainability of the public finances. It targets the bulk of available discretionary resources at lower and middle income public servants.

It meets the existing commitments made under the Haddington Road Agreement (HRA). It is only made possible by the improvement in our economy delivered by this Government and the public service reform which has been delivered by public servants in recent years.

Separate from this Agreement with the Public Sector Unions, it is my intention to fulfil my commitment to begin the orderly restoration of public sector pension reductions made in recent years. Click here to view the Public Service Stability Agreement 2013-2018. You can also view the Public Service Stability Agreement in Irish .

The Frequently Asked Questions (FAQ) relate to the overarching provisions in the Lansdowne Road and Haddington Road Agreements.

Note to Editors: Cost of the Agreement

As set out in the Formal Text, this agreement covers the period to September 2018.  The agreement has additional costs of €566 million over a 3 year period as set out below.

For further information on the Lansdowne Road Agreement and to view the impact of pay proposals for public servants, please click here.

The costs of the commitments already made by Government in the Public Service Stability Agreement (the Haddington Road Agreement) are €278 million.

2016 2017 2018 Cumulative
HRA Commitments  €m   €m   €m  €m
Supervision and Substitution 18 53 35 106
HRA Pay Restoration 0 75 97 172
Already Committed Cost from HRA 18 128 132 278
Cost of New Agreement 249 162 155 566
Total Cost 267 290 287 844

Impacts on Income Groups of this Agreement The effect on various income groups of this Agreement are set below.

2016 %
30,000 1,003 3.3%
60,000 733 1.2%
100,000 733 0.7%
2017
30,000  567 1.9%
60,000 567 0.9%%
100,000 267 0.2%
2018
30,000 600 2%
60,000 595 1.0%
100,000 0 0%
Cumulative Effect  2016 – 2018
30,000 2,170 7.2%
60,000 1,895 3.2%
100,000 1,000 1%