The so-called ‘pension levy’ has been slightly reduced for all public servants with effect from 1^st January 2014. The change – worth €125 a year – was implemented by exempting more earnings from the levy.

IMPACT and other unions successfully sought this adjustment in talks on the Haddington Road agreement last year. Although it’s a very modest improvement, it’s significant because it represents the first positive movement in public service incomes since 2008.

Public servants’ pay was effectively cut by an average 7% when the levy was introduced in 2009. 2010 bought further pay cuts. Public servants who earn over €65,000 – about 13% of all public sector employees – saw a further cut under Haddington Road, although this will be restored over time for most of them.

An additional cut of 10% for new entrants from 2011 was also addressed under Haddington Road and last October unions achieved the end of the two-tier pay system that it had introduced.

The reduction in the so-called ‘pension levy’ will be done by halving the rate of 5% on earnings between €15,000 and €20,000.