The 1,300 county, city and town councillors in the country are to receive a significant increase in the amount of expenses they can claim each year.
Councillors are also to be given a substantial rise in the gratuity given to those who retire or lose their seats at local election time.
The increases are to be announced today by Minister for the Environment Dick Roche at an annual Christmas lunch he hosts for more than 200 councillors from around the country.
The move follows a year-long campaign by councillors who have said they are underpaid for the increasing workload they are required to undertake. They have claimed it is the equivalent of a full-time job for many representatives.
Most councillors take home in excess of €28,000 in payments and expenses, much of which is untaxed.
This includes an annual salary of just over €16,000, an annual expense allowance based on the distance they live from council offices and to cover postage and telephone expenses. They also receive travel, subsistence and overnight expenses for attending various meetings and conferences on official council business.
In addition many councillors receive other expenses through being nominated to represent the council on other bodies, such as health forums, VECs and regional authorities.
Councillors have been seeking an increase to the annual salary element of their package, which stands at two-fifths of that of a Senator. They had also been seeking a pension.
It is expected that Mr Roche will not be changing the salary level but will instead increase the amount of tax-free expenses paid out to councillors. He has also been examining whether another allowance of more than €2,000 for telephone, postage and other costs should be increased.
The Minister is set to reject calls by councillors for a State-funded pension scheme. However, he will agree to calls by the Association of County and City Councils for an increase in the gratuity scheme for councillors who retire or lose their seats.
At present councillors availing of the tax-free lump sum receive more than €2,500 for each year they served on the council since 2000. It means a councillor retiring at the next local elections in 2009 will receive more than €20,000. Mr Roche has been examining the possibility of extending this payment to cover payments for years preceding 2000.
Every councillor who attends today's meeting will be entitled to claim expenses from one of the three councillor representative bodies, which are funded directly by local authorities. The overall expenses bill is expected to exceed €60,000 for the lunch, including mileage and overnight allowances.
The announcement of the pre-election additional payments following lobbying by councillors and Senators.
Councillors make up the majority of the electorate in most Seanad elections with the exception of the two university panels.