Unions to seek public service pay rise by changing pension levy

Unions are to seek a flat-rate pay increase for staff in the public service through changing the way the pension levy is applied.

Sources said if the first €27,000 of income was exempted from the public-service pension levy, it would generate a boost in earnings for staff of about €800 per year.

The Irish Times reported yesterday that the Government was expected to allocate between €250 million and €300 million for public service pay restoration. On average, this would result in gross increases of more than €800 a year across the public service.

Special pay increases

Informed union sources suggested staff earning less than €27,000 could receive special pay increases to allow them to benefit to the same extent as people receiving any pension levy reduction.

Talks between Government and unions on pay restoration will start on Tuesday. Initial meetings are expected to centre on an economic briefing and setting out the financial envelope available.

It is envisaged the parties, in the second week of the talks, will work on a text for extending the duration of the Haddington Road agreement, which is due to expire next summer. It is anticipated this would preserve the terms of the current deal, including the requirement to co-operate with ongoing change.

The Government is not expected to agree to rolling back measures in the agreement, such as the longer working week for staff in the public service. However, union sources said they did not expect any significant additional work-practice changes would be sought.

The parties are expected to deal specifically with pay-restoration issues in the last week of May. It is understood they aim to have a new agreement concluded at the beginning of June. This would enable primary teachers to ballot before the end of their academic year.