US president Barack Obama plans to return 5 per cent of his $400,000 (€311,000) salary in a gesture of solidarity with US government workers being forced to go on unpaid leave under a raft of budget cuts.
The president’s $16,667 pay cut will be backdated to March 1st and will apply for the rest of the year, several US news media outlets reported, citing an unnamed official in the Obama administration.
The 5 per cent figure was calculated based on the level of automatic spending cuts in non-defence federal government agencies.
Their budgets are being reduced under $85 billion of cuts, known as the sequester, which came into effect at the start of last month.
“The president has decided that, to share in the sacrifice being made by public servants across the federal government that are affected by the sequester, he will contribute a portion of his salary back to the treasury,” said the official.
The salary of the US president is set by law and cannot be changed but he can voluntarily forego part of his pay by writing a cheque to the US treasury.
Indiscriminate cuts
The indiscriminate, across-the- board budget cuts are affecting everything from air-traffic control towers and security queues at airports to the hearing of federal court cases.
Economists have warned that the spending reductions could cost as many as 750,000 jobs.
News of Mr Obama's decision came a day after US secretary of defence Chuck Hagel and deputy secretary of defence Ashton Carter said they would forego part of their salaries in line with pay lost by almost 800,000 department of defence civilians who are being "furloughed" or forced on unpaid leave of 14 days.
Department of defence staff were originally told they would face 22 days of unpaid leave to achieve spending cuts set under sequestration, but this will be reduced to 14 days following the passage of a new defence spending Bill.
Mr Hagel earns $200,000 a year, while Mr Carter is on a salary of about $180,000 a year.
Irish political leaders have also been taking pay cuts as part of budgetary adjustments to correct the public finances.
Taoiseach Enda Kenny will see his €200,000 salary drop to €185,000 under the next Croke Park public-sector pay deal, while Tánaiste Eamon Gilmore’s salary will fall to €171,000 from €184,000.
