Minister for Public Expenditure Brendan Howlin has outlined plans for pay caps on the salaries of senior civil servants and the chiefs of commercial semi-states like the ESB and Bord Gais.
However, the move will not affect the rates of current bosses but will apply to future appointments with a general €250,000 cap for semi-state chiefs and €200,000 in the case of civil servants.
Some semi-state chiefs earn well over €500,000 currently while other top level civil servants take home more than the Taoiseach’s €200,000 salary.
“In light of the ongoing severe economic conditions facing the country there is a need for leadership to be shown by those who hold high office across the public sector," he said.
"The Government supports a strong policy of pay restraint within the public sector, including the application of pay caps."
Mr Howlin added that the Government also wants commercial semi-state bosses to take cuts of 15pc on their salaries or less if their pay is already below the proposed ceiling.
“Such exceptions will be limited to instances where the exception is for a role of substantial importance in the public service or a commercial state company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role,'” he said.