Q&A: Who are the 4,000 public servants earning over €150,000?

Pay restoration and FEMPI is back in the news. What’s it all about?

FEMPI stands for Financial Emergency Measures in the Public Interest and it was introduced by Government in 2010 when the economy was in free fall. Public servants were required to take reductions in pay and pension rights, with those earning the most taking the biggest proportionate hit.

Once the State began recovering economically, a process of restoring the pay to previous levels began.

[ Top earning public servants to get pay rises from next week ]

The Public Service Pay and Pensions Act 2017 set out pay restoration on a staggered basis. The second-last group, those earning up to €150,000 annually, reverted to their original pay scales in July of last year. The very last group, those earning over €150,000 are due to get their pay restored on July 1st this year under that 2017 Act.

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Who is included in the group?

It is made up of about 4,000 public servants, all earning over €150,000. They make up about 1 per cent of the public service workforce. About 3,500 of them are medical consultants. Others include the most senior civil servants, including secretaries general of Government departments, senior executives of State bodies, certain judges, as well as very senior staff in academic institutions.

The secretary general to Government is paid €215,000. There are 33 non-medical staff in the HSE who earned over €150,000 last year. The salary of a High Court judge is €196,000 a year. Most hospital consultants earn in excess of €200,000 per year. The salary increase to achieve restoration will range from low single digits up to 15 per cent. Those who receive restoration in 2022 will not be entitled to any pay increases separately negotiated for this year.

Is it a done deal?

It looks that way. The restoration is grounded in legislation. As Pat Leahy reports, the Government would have had to introduce emergency legislation to override it. That would have needed to have been agreed by Government and rushed through the Dáil by July 1st. Bills have been produced more quickly than a rabbit out of a magician’s hat before but Government sources have said it is unlikely.

Back in March, the Government was certainly considering holding back. A full review of Civil Service recruitment and pay was announced by Minister for Public Expenditure Michael McGrath following the controversy surrounding Robert Watt’s €80,000 pay hike.

At the time, Taoiseach Micheál Martin told the Dáil the department was also “currently examining potential options around how and when this final element of restoration will be implemented. As restoration is provided for in legislation, this will require careful consultation with the Office of the Attorney General.”

So a pause or reverse of the July increase was being considered. Whatever advice was received, the Government has backed away from that option.

What fallout is expected?

Politically, the timing of this pay increase could not be worse. It comes at a time when prices are skyrocketing and people are struggling to make ends meet. The optics of the highest-paid public employees in the State getting substantial pay increases (even if it’s restoration) are not good. A public and political backlash is inevitable.

It must be noted, however, that politicians and office holders will not benefit from these increases.