Public sector pay deal: Over 200,000 public sector pensioners set for increases under revised agreement

One per cent rise will be paid today and another 3pc will be paid if a proposed review of the deal is accepted this week

Most public sector retirees will get the increases as their pensions rise with pay hikes, a system known as pay parity. Pictured, Public Expenditure and Reform Minister Michael McGrath. Photo: Collins

Most public sector retirees will get the increases as their pensions rise with pay hikes, a system known as pay parity. Pictured, Public Expenditure and Reform Minister Michael McGrath. Photo: Collins

thumbnail: Most public sector retirees will get the increases as their pensions rise with pay hikes, a system known as pay parity. Pictured, Public Expenditure and Reform Minister Michael McGrath. Photo: Collins
thumbnail: Most public sector retirees will get the increases as their pensions rise with pay hikes, a system known as pay parity. Pictured, Public Expenditure and Reform Minister Michael McGrath. Photo: Collins
Anne-Marie Walsh

More than 200,000 public sector pensioners are set for increases worth 4pc this year following a government pay deal review sparked by soaring inflation.

Public Expenditure and Reform Minister Michael McGrath confirmed the pensioners will also benefit from a lump-sum as one of the increases is backdated to February this year.

He said the revised Building Momentum agreement is “affordable and fair” and acknowledges higher than anticipated rates of inflation since last year.

A 1pc pay rise is due to be paid to over 370,000 public servants from today under the existing agreement with the Government.

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Another 3pc will be paid if a proposed review of the deal is accepted in union ballots, which will end next week.

Most public sector retirees will get the increases as their pensions rise with pay hikes, a system known as pay parity.

They would also be due further increases to be paid to staff under the proposed review next year.

These are a 2pc increase on March 1 and a 1.5pc increase on October 1.

Public service unions are expected to endorse the revised agreement next Friday.

“I recently approved the application of increases for public sector pensioners who commenced employment before 2013 in line with adjustments to the pay scales of existing staff members for the remaining life of the agreement,” said the minister.

“Over 200,000 persons in receipt of a public sector pension will benefit from this pay parity provision.

“Pensioners would also benefit from the back-dating element to the 3pc increase this year.”

The minister noted that the final 1pc instalment of the current pay deal is due today. Lower-paid staff will get a €500 increase.

“In the difficult inflationary environment we are currently experiencing, public servants will welcome the payment of the October 1 instalment of the current Building Momentum agreement,” he said. “This is the final increase provided for under the existing agreement.

“As we are all aware, negotiations concluded at the end of August on a proposed extension to the agreement which, if ratified by public sector unions, will result in an increase in annualised basic salaries of 3pc backdated to February 2, 2022 and further increases in 2023.”

He said approval of the proposed deal would give certainty around the public service pay bill and ensure the continued delivery of vital services.

“I look forward to the conclusion of the ballot process and the implementation of the agreed increases, should the deal be ratified,” he added.

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