Pay for middle-ranking officers in the Defence Forces must be increased by up to 45 per cent, the Government's Public Service Benchmarking Body has been told.
The Representative Association of Commissioned Officers (RACO), which represents up to 1,200 officers, told the body in late November that their pay had fallen significantly behind that of their counterparts in the private sector.
Since April 2001, lieut colonels earn between £37,256 and £41,625, commandants earn between £29,534 and £37,118, while captains can receive up to £31,303 a year.
A report completed for RACO by Inbucon Consultants argued: "On average, each scale would need to be increased by 43.18 per cent, 37.32 per cent and 25.45 per cent respectively to realign them with their private sector equivalents."
"The Defence Forces are experiencing severe difficulties both in attracting candidates for officer cadetships and in retaining officers. This poses a serious threat to the future development of the organisation," RACO claimed.
In 1990, the Gleeson Commission on Remuneration and Conditions of Service benchmarked pay scales for Defence Forces' officers for the first time in line with outside counterparts.
"However, the position of the military officer on this scale has deteriorated in the period since the Gleeson Commission's recommendations were implemented," RACO told the body.
Lieut Colonels now receive 96.55 per cent of the assistant principal (higher) grade, a drop of 8.87 per cent since 1990. Commandants earn 95.52 per cent of the assistant principal (standard) grade, a fall of 7.91 per cent in the same period.
In future, officers' pay should be linked to that offered to middle managers in companies with 500 workers and more, and it should recognise their role in bringing about greater efficiencies.
In addition, a separate payment should be made to cover factors "unique to military service". These include frequent moves, poor-quality accommodation, long days and compulsory early retirements.
The total numbers in the Defence Forces have fallen by just under 20 per cent since 1989, while the demands have increased heavily because of reorganisation.
The management of the force has been "comprehensively overhauled" and "restructured at every level", while a large number of barracks have been closed.
"While personnel numbers have been significantly reduced, the demands on the organisation have increased. In addition to developing and implementing the various elements of the change process the forces have had to meet significantly increased operational and training demands.
"This has required a massive increase in productivity, both individually and at the organisation level. The contribution of officers to the success of the change process has been absolutely critical," reads the submission from RACO.
"However, the increase in productivity of the members of the Defence Forces was not rewarded by increases to remuneration over and above those received by other public servants during this period," it added.