Top level public servants should not receive any pay increases including those under any national wage agreements until at least 2012, a major new report commissioned by the Government has recommended.
The Review Body on Higher Remuneration found that generally speaking in comparison with a range of EU countries senior public servants in Ireland including the Taoiseach, ministers and top-level civil servants were paid substantially more than their counterparts abroad.
The report, which benchmarked top-level pay in Ireland against that in six other European countries, found that the salary of the Taoiseach to be the second highest in the group – slightly behind Austria but significantly ahead of that of the other five heads of government.
However it said that when adjusted to take account of the value of benefits such as pension and the provision of a car as well as income tax and purchasing power, the pay of the Taoiseach fell to third place in the comparative table, significantly behind that of the heads of government in the UK and Germany whose leaders were paid 31 per cent and 21 per cent greater (on an adjusted basis) than Mr Cowen.
“However, the adjusted income of the Taoiseach is significantly ahead of that of the other four heads of government in the study. The adjusted income for the Finnish head of government, which was banded along with the Taoiseach, is only 75 per cent of that applying to the Taoiseach”, the report said.
The reductions in pay for members of the cabinet and top level civil servants, announced in the Budget on Wednesday, were based on the finding of the review body report.
In the Budget the Government announced cuts ranging from eight to 15 per cent in the pay of top level public servants. The pay of the Taoiseach is to be reduced on a permanent basis by 20 per cent.
The new pay rate for the Taoiseach will be €228,466.
