Rehab release staff salaries

The Rehab group has published the salaries of its staff which reveal that just 3% earn over €65,000 a year.

The charity has come under increasing pressure to reveal how salaries are set. The Rehab Group as issued a statement this evening which provided responses to questions received from the Public Accounts Committee.

There are 2,470 staff members currently employed in the Rehab Group’s Irish entities. A total of 77 are paid at the rate of €65,000 or above, which equates to just 3% of staff.

The statement also said the salaries of executive team members are set by the Remuneration Committee of the Rehab Group Board which commissions independent reports on salary levels in general Irish industry to advise it in carrying out its work.

Currently all staff including the executive team are entitled to membership of a defined contribution pension scheme with an employer’s contribution of 6%.

The Rehab Group Defined Benefit Pension scheme commenced a wind-up process in early 2013. Within the contract of employment certain staff have company vehicles on which they pay the relevant taxes as a benefit in kind.

The Rehab Group added it does not make any contribution to private health insurance on behalf of any staff members. Expenses incurred for as a direct result of company business are authorised to staff members once vouched for.

Rehab did not have a spokesperson available for further comment on the matter this evening.

Full Statement from the Rehab Group Board

The Rehab Group is providing today to the Public Accounts Committee responses to the questions which were sent to it by the Public Accounts Committee by letter of Tuesday 4 March, following the meeting on Thursday 27 February.

This statement deals with the question of senior management remuneration within the Rehab Group. The Rehab Group is an independent international group of charities and commercial companies.

Over 3,500 staff members provide high-quality health and social care, training and education, and rehabilitation, employment and commercial services in Ireland, England, Wales, Scotland, the Netherlands, Poland and Saudi Arabia. The people who currently use Rehab’s services include young people and adults with physical, sensory and intellectual disabilities, people with mental health difficulties, people with autism and people with an acquired brain injury.

A range of essential services is also provided to older people, carers and others who are marginalised including people who require supports to enter or re-enter the workforce and the long-term unemployed. Every year, more than 60,000 people and their families benefit from the supports provided by Rehab in more than 260 locations. The Group had a turnover in 2012 of €183 million.

At the Public Accounts Committee Meeting of 27 February 2014 the Health Service Executive noted the governance arrangements in place for the delivery of services contracted under section 39 of the Health Act 2004 and the payment of public monies in respect of those services, and stated that the HSE is satisfied that both National Learning Network and RehabCare are discharging their roles and responsibilities under their respective service arrangements to an acceptable standard in terms of service delivery, quality and cost-effectiveness.

Solas also confirmed that they have systems in place to ensure that National learning Network meets its approved quality control systems.

The Rehab Group had previously committed to publishing details of the salaries of the eight senior executives, which comprise the executive management team of the organisation, along with the Chief Executive Officer. This information is included in the table below and its presentation has been guided by the Accounting and Reporting by Charities Statement of Recommended Practice (SORP) accounting standards.

The Rehab Group has also been asked by the Public Accounts Committee to provide information on the “remuneration levels paid to all staff whose salary are equivalent or above Grade 8 of the consolidated pay-scales”. This information has been provided below for the Irish divisions of the Rehab Group. The presentation of this information has also been guided by the SORP accounting standards.

SORP is not a requirement in Ireland, but is recommended best practice, and requires disclosure of salaries in excess of GBP £60,000 in bands of GBP£10,000. The Rehab Group will adapt this method and publish salary information in bands of €10,000 starting at €65,000; equating to grade 8 of the Department of Health consolidated pay scales, which is the level at which salaries are required to be disclosed to the HSE under its service level arrangements. This information will be published annually by the Rehab Group.

There are 2,470 staff members currently employed in the Rehab Group’s Irish entities. A total of 77 posts are paid at the rate of €65,000 or above, which equates to 3% of staff.

The Rehab Group executive management team of eight members plus the Chief Executive is collectively responsible for the national and international operations of the Rehab Group, This encompasses all service delivery and commercial activity, as well as the corporate services functions, such as finance, property, facilities, human resources, health and safety, clinical governance, marketing, communication, information technology and public affairs across all the international jurisdictions in which the Group operates. Each post has specific and significant responsibilities under this remit.

The remainder of the management and professional posts which come into this category of remuneration are posts of significant responsibility and seniority, encompassing a wide range of duties, and requiring technical, professional and clinical expertise and experience, and management responsibility.

Salary Level - Numbers Employed

€65,000-69,999 - 26

€70,000-79,999- 26

€80,000-89,999 - 6

€90,000-99,999 - 7

€100,000-109,999 - 4

€130,000-139,999 - 2

€140,000-149,999 - 1

€150,000-159,999 - 3

€170,000-179,999 - 1

€240,000-249,999 - 1

The salaries of the executive team members are set by the Remuneration Committee of the Rehab Group Board, which commissions independent reports by companies such as Hay and Towers Watson on salary levels in general Irish industry to advise it in carrying out its work. As part of the process the responsibility of each post is individually, and independently, assessed, internally and externally.

In developing a policy for setting remuneration, the Board has traditionally looked to the “market median”, or middle of the general pay market, to guide decision making on pay level and individual pay positioning. In line with best practice and as per its established practice for over a decade, independent reviews of the posts within the executive team take place regularly, most recently in 2014.

All of the executive team members have a contractual entitlement to performance-related pay elements, which are not guaranteed but which may be awarded for exceptional performance against agreed criteria. Performance related payments were waived by all members of the executive team in 2010 and 2011.

An element of performance-related payment was awarded by the Remuneration Committee, of between €6,000 and €14,200 to executive team members based on performance in 2012. The Chief Executive, Director of Finance and Director of Human Resources waived any performance-related payment. No performance-related payments were paid for 2013.

Currently all staff including the executive team are entitled to membership of a defined contribution pension scheme, with an employer’s contribution of 6%. The Rehab Group Defined Benefit Pension scheme commenced a wind-up process in early 2013.

Within their contract of employment certain staff have company vehicles on which they pay the relevant taxes as a benefit in kind. The Rehab Group does not make any contribution to private health insurance on behalf of any staff members.

Expenses incurred for as a direct result of company business are authorised to staff members once vouched for.

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