Cut of €7m from public service payments under new system

The Government is to increase the level of subsistence payments to staff across the public service who have to work away from their offices.

It is also to toughen up the qualifying criteria for such allowances and believes the total amount paid out will be reduced by about €7 million as a result.

The overnight rate paid to staff is to rise from €108.99 to €125. However, the required distance of travel away from an official’s home or office which triggers qualification for the payment will be increased from 48km to 100km, although there will be some exceptions, such as in cases of bad weather or business not concluding until late in the evening.

The overnight rate will be reviewed annually in future from 2016 using the “eating out” and “accommodation” elements of the Consumer Price Index.

Under the changes, a separate day-rate payment for staff away for more than five hours is to rise from €13.71 to €14.01.

However, the distance requirement to qualify for these payments will also increase from 5km to 8km.

The new payment structure will come into effect in the Civil Service from the start of July and is expected to be introduced in other parts of the public service in the months ahead.

It is understood that mileage travel expenses for staff in the public service will be reviewed over the coming months, with third party assistance if necessary.

Standardised

This will look at issues such as residual value of cars, insurance, diesel versus petrol vehicles and miles per gallon.

Travel and subsistence rates were reduced by 25 per cent in March 2009.

Government sources said that while the subsistence rates were to increase in the months ahead, the new levels would still be below those in place prior to the 2009 cuts.

Under the Haddington Road agreement on public service pay and productivity, trade unions agreed to co-operate with a review of travel and subsistence arrangements and the implementation of a standardised system across the public service.