The Government is preparing to restore the pay of top earning public servants, which was cut during the financial crisis more than a decade ago, from next week.
The pay restoration is the last phase of the unwinding of pay cuts imposed on public servants during the financial crisis and is understood to involve pay rises of 10-15 per cent for judges, hospital consultants and many senior officials from July 1st.
The date for the restoration of pay has been set for July 1st in legislation. Any change to this would require emergency legislation to be passed through the Oireachtas before that date. The Cabinet did not approve any legislation today, and none is planned for this week.
It is understood that no legislation will be brought forward next week, meaning that the pay restoration must proceed from next Friday week.
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The move affects some 4,000 public servants earning in excess of €150,000. Pay restoration has already taken place for all other public servants.
Previously, Ministers had intended to postpone the pay rises. However, legal advice suggests that such a move would be open to challenge and it is understood that Ministers and senior officials expected that such a challenge would be inevitable.
Doctors’ organisations have previously warned the Government not to cancel or postpone the pay increases.
In addition, it is understood that hospital consultants have warned the Government that they would not proceed with talks on a new contract if their pay was not restored. Stalled talks on a new contract – considered essential if more consultants are to be recruited to the health service – are due to restart in the coming days.
In a statement, the Department of Public Expenditure said that Minister Michael McGrath expected to make a decision later this week or early next week.
However, political sources say the restoration must now go ahead and expect a fierce political backlash.
The Government this week said it would not introduce any further measures to help people with cost of living increases until the Budget in November.
