From Department of Public Expenditure, NDP Delivery and Reform
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The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe, TD today (Monday) welcomed the outcome to discussions between Public Service employers and the Public Services Committee of ICTU in respect of the ‘new entrant’ salary scale issue. The discussions were informed by the Report to the Houses of the Oireachtas by the Minister in accordance with Section 11 of the Public Service Pay and Pensions Act on 16th March last.
Under the Public Service Stability Agreement 2018-2020 (PSSA), which was negotiated last year, it was agreed by all parties that there would be an examination of remaining salary scale issues in respect of post-January 2011 recruits at entry grades.
The Minister, in commenting on the outcome to the discussions said:
"The measure that has been agreed* between the parties to the Public Service Stability Agreement was formulated following what were, I understand, complex and difficult discussions. It provides a credible pathway to addressing this matter and represents a fair and reasonable outcome for the 60,000 ‘new entrant’ recruits to the public service since January 2011. This includes over 16,000 teachers, nearly 5,000 Special Needs Assistants and almost 10,000 nurses."
“The measure being announced today further highlights the benefits for public servants of being part of the Public Service Stability Agreement."
“From my perspective, the outcome enables us to manage in a gradual, affordable,sustainable and fair manner the €200m costs associated with addressing this issue. The cost of this measure during the remaining term of the PSSA is €75m (€27m in 2019 and €48m in 2020). Provision for the additional cost will be provided for in the upcoming budget 2019 and subsequent years.”
In general, the agreement provides for two separate interventions which will take place at point 4 and point 8 of pay scales. The practical effect of this is that for ‘new entrants’ the relevant points on the pay scale will be bypassed thereby reducing the time spent (by bypassing two increment points) on the scale for progression to the maximum point.
The benefits under the measure will be effective from 1 March 2019 and will be restricted to Parties adhering to the Public Service Stability Agreement 2018-2020.
ENDS
Notes for Editors
Under Section 11 of the Public Service Pay and Pensions Act, the Minister for Finance and Public Expenditure and Reform was required within three months of the passing of the Act, to prepare and lay before the Oireachtas a report on the cost of and a plan in dealing with pay equalisation for new entrants to the public service.
The report, under Section 11, was submitted to the Oireachtas on 16th March by the Minister for Finance and Public Expenditure and Reform.
The report quantified the cost of a two point adjustment as approximately €200m and the potential benefit to the individual as €3,300 on average.
Terms of Agreement
The following measure has been agreed by the Parties to the PSSA, informed by the Report to the Houses of the Oireachtas by the Minister for Public Expenditure and Reform in accordance with Section 11 of the Public Service Pay and Pensions Act. It also reflects detailed discussions and analysis between the Public Services Committee and representatives of Public Service Employers. The outcome is considered the best that can be achieved in the context of the PSSA and the very significant other expenditure demands on the Exchequer for Budget 2019 and subsequent years.
Where two additional scale points were applied to pay scales under the Haddington Road Agreement, it is agreed that there will be two separate interventions in the pay scales as they apply to ‘new entrant’ public servants recruited since January 2011.
The two separate interventions will take place at point 4 and point 8 of pay scales. The practical effect of this is that for ‘new entrants’ the relevant points on the scale will be bypassed thereby reducing the time spent (by bypassing two increment points) on the scale for progression to the maximum point.
Where one additional scale point was applied to scales, a single point of intervention will apply at point 4.
This measure will apply from 1 March 2019 and will be applied to each eligible new entrant as they reach the relevant scale points (point 4 and point 8) on their current increment date.
Due to the interaction with normal increment progression, the above means that existing ‘new entrant’ staff whose next increment after 1 March 2019 is Point 7 or above on relevant scales will receive the benefit of both interventions on the date of their next normal increment. Existing ‘new entrant’ staff due to reach points 5 or 6 on relevant scales as their next normal increment will get the benefit of the first intervention on that date and the second when they progress to Point 8.
All of the above is subject to not exceeding the scale max. Where necessary the waiting time for Long Service Increments (LSIs) where they currently apply in relevant scales will be reduced by one or two years as appropriate as part of the implementation of the above measure.
The cost of this measure during the remaining term of the PSSA is €75m.The full cost of the measure based on current data and public service numbers (2017) will cost €190m out to 2026.It is estimated some 58% (35,750) of ‘new entrants’ will benefit from this measure in year 1 rising to 78% (47,750) by year 2.
The above measure will be given effect by way of a detailed Circular in due course.