Public sector pay lags by 10%, review claims

The independent review body which assesses top-level pay in the public sector has said salary levels in this area have fallen around 10 per cent behind comparable private sector groups over the last five years.

In its interim report published yesterday, the Review Body on Higher Remuneration in the Public Sector said the position had been exacerbated by the growth in performance-related pay in the private sector.

However the review body did not believe that the gap in base salaries which it identified between top-level public and private sector groups should be bridged at this stage.

The review body recommended 7.5 per cent increases for 3,300 top-level civil and public servants, including Ministers, judges, senior civil servants and hospital consultants.

The review body said that in its full report, to be published in 2007, it would be examining how the remuneration of individual posts compared with private sector jobs of similar weight, and assessing whether the relative pay positions were correct given developments since its last analysis in 2000.

"We feel it is important that any interim increase recommended now should not prejudice the outcome of the general review or restrict our freedom to make any changes we consider to be justified," it said.

While recommending a uniform level of increase in its interim report, it indicated that there could be variations in pay rises proposed for different groups in its final document in 2007.

The review body also indicated that it would review existing performance-related payments in the public sector. These currently apply to the grades immediately below the top level in the civil service, the Garda and the Defence Forces.

The Government in 2001 ruled out paying performance-related awards to secretaries general of departments, the Garda Commissioner or the Chief of Staff of the Defence Forces.

The review body said the application of performance awards to secretaries general and other comparable public sector posts, as well as the question of the extent to which performance bonuses in the private sector should be reflected in the pay of top public servants, were "matters of major importance" that would have to be addressed in the final report in 2007.

The review group also signalled that in its final report it would take into account pension arrangements paid to top public servants.

The review group findings were yesterday welcomed by the trade union Impact.

However hospital consultants expressed concern at the indications that pension arrangements will in future be considered in determining pay increases.

Impact general secretary Peter McLoone said the groups covered by the report had not been included in the benchmarking process and that top-level pay had not been assessed since 2000.

The deputy secretary general of the Irish Hospital Consultants' Association, Donal Duffy, said that pension arrangements had never previously influenced pay awards.

He said his members would be concerned at this development.