Here’s everything you need to know about today’s public sector pay deal

The Government and public service unions have reached a draft agreement on a pay deal to succeed the Lansdowne Road Agreement.

Almost 250,000 public sector workers recruited before 2013 are set to receive pay hikes of between 6.2% and 7.4% over the next three years.

The proposed three-year deal to replace the Lansdowne Road deal will cost €180m in the first year.

Key points of the deal

* The new three-year deal will run from January 1, 2018 - December 31, 2020 and will cost €887m over this time.

* Depending on income, those in the public sector will see their wages increase from between 6.2% and 7.4% over the three years, with 73% of public servants gaining more than 7% by 2020.

* By 2020, more than 90% of public servants will be out of FEMPI pay provisions, and almost a quarter will have exited FEMPI pension levy payments.

* Pay restoration will be carried out on a phased basis over the lifetime of the agreement:

January 1, 2018: 1% pay adjustment

October 1, 2018: 1% pay adjustment

January 1, 2019: Pension levy threshold up from €28,750 to €32,000 (worth €325pa)

January 1, 2019: 1% pay adjustment for those earning less than €30,000

September 1, 2019: 1.75% pay adjustment

January 1, 2020: Pension levy threshold increased to €34,500 (worth €250pa)

October 1, 2020: 2% pay adjustment

* A new Additional Superannuation Contribution (ASD) will replace the pension levy.

* ASD will be paid by any public servant who earns more than €34,500. It will be on average 10% of their earnings above €34,500.

* The new pension levy will not be applicable to non-pensionable earnings, including overtime.

* Government will take in €550m from this new permanent pension contribution, compared to the €700m generated from the current pension levy.

* The combination of pay and pension levy adjustments will be worth 7.4% to those earning €30,000 a year or less, over lifetime of deal.

* For those earning between €50,000-€55,000 a year, the combination of pay and pension levy adjustments will be worth 7% over lifetime of deal.

* Those on wages between €55,000-€80,000 will see pay and pension levy adjustments worth between 6.6% and 6.9%.

* There will be no change in working hours, but employees will be given the option to revert to pre-Haddington Road hours if this does not impact on front-line services. However, this will mean a relevant reduction in pay.

* There will be no extension of Saturday working. However, there will be a review of rostering arrangements for groups, but no change without agreement.


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