Recruits to earn 10pc less than current employees
Published 25/11/2010 | 05:00
NEW recruits to the public service will earn 10pc less than state employees do now.
Anyone joining the state workforce in the future will have to accept pay reductions and a cheaper new pension scheme. The plan also says recruits must start on the minimum point of the pay scale.
A 10pc pay cut would shave €4,704 per year, or €90 a week, off the average public servant's gross earnings of roughly €47,049 a year, although new entrants will be on minimum rates.
The Irish National Teachers' Organisation said it would mean a 14pc cut for teacher recruits, who earn around €34,000 a year, because they normally start on the second point of the pay scale.
Despite the pay cut, it is unclear when new public servants will be hired again as the plan also calls for a stricter ban on recruitment.
There has been an embargo on hiring in place since March last year, but the plan wants it to be imposed more forcefully, with few exceptions.
"There can be no question of recruiting replacement staff in any sector until the reductions required to reach the 2014 ceilings have been exceeded," it warns.
There will be some exceptions made for "essential posts", particularly in education.
The 10pc pay cut will mean existing pay rates are gradually phased out, although this is unlikely to accelerate until 2014.
It means previous benchmarking increases will be wiped out, but does not breach the Croke Park deal, which only protects the pay of existing staff. A cheaper pension scheme, announced in the last Budget, will also be brought in from January.
This raises the minimum pension age to 66 and is based on a worker's average earnings over their career rather than their final salary.
IMPACT general secretary Shay Cody said the cut in pay for entrants was an "additional attack on low-income families".
He said it would bring pay for new public servants 25pc lower than it was two years ago.
SIPTU leader Jack O'Connor said the Croke Park deal was about the pay of existing public servants, but claimed the new rate breached collective agreements between the Government and unions.