The Government has commissioned a new review of top-level pay in the public sector which will examine whether rates in Ireland are out of line with those in other EU countries.

Among those whose pay will be assessed are Government Ministers, judges, top civil servants and local authority and health sector officials.

The largest group to come within the scope of the Review Body on Higher Remuneration are nearly 2,000 hospital consultants who recently signed a new contract with salaries of up to €240,000 a year. It has been argued that salaries for senior hospital doctors here are far higher than those in other European states.

Minister for Finance Brian Lenihan told the Dáil the review body would to “undertake a fresh review of top-level pay rates to take account of the changed budgetary and economic circumstances and the changed private sector pay environment”.

He also wanted the group to “benchmark rates [in Ireland] against those of other EU countries of comparable scale”.

The review is to be completed by July.

“Pay at leadership levels in the public service should be more in line with pay in other countries rather than with top level private sector pay in this country,” Mr Lenihan said.

In its last report in 2007, the review body proposed average increases of 7.3 per cent. However, these increases were not implemented in full.