€520m bill to restore pay for public servants

HIGHER-PAID public sector workers have secured a massive €520million pay restoration bonus despite the strained state of the nation’s finances.

Public Expenditure Minister Michael McGrath yesterday revealed that the Exchequer is dealing with a 16% unemployment rate and unexpected Covid-related expenditure of between €25 billion and €30billion.

But the Exchequer also managed to find a preBudget sweetener of €520million for public sector workers who earn up to €70,000.

And Mr McGrath pledged that when it comes to those earning more than €70,000 a year, t here i s more to come in 2021 and 2022.

Mr McGrath was responding to queries by Richard Boyd Barrett TD about the estimated full-year cost of repealing the cost-cutting Financial Emergency Measures in Public Interests legislation (FEMPI), which was introduced after the 2010 crash. The emergency legislation cut the pay and pensions of public sector workers during the era of austerity. The unwinding of this legislation is continuing under the Public Service Stability Agreement. Mr McGrath (pictured) said that, last year, salary rates up to €50,000 were fully restored. He added that, in the wake of a 2% wage increase on October 1, ‘annualised salary rates up to €70,000, which accounts for over 90% of the public service [were] fully restored’.

Mr McGrath also noted that allowances that were reduced by 5%, 8% and 10% under the 2009 FEMPI act had been restored on October 1.

The mi n i s t e r also confirmed that around 97% of public service pensioners have had their payments restored.

He revealed: ‘Combined, the full-year costs of the measures above are estimated at €520million.’

Mr McGrath signalled that there will be f urther controversial increases next year by pledging that top mandarins and politicians will share a €42million pay bonus.