There were heated exchanges in the Dáil following the passage of legislation which allows graduated cuts for public sector workers on pay of €65,000 or more.

United Left Alliance TD Clare Daly accused the Government of "treachery" in passing the Financial Emergency Measures in the Public Interest Bill, but Tánaiste Eamon Gilmore said the Government was engaged in protecting employment.

He added that the first thing a trade union member wanted was their job and the State had to have the means to actually pay people.

The legislation allows for pension reductions, changes in pay scales and the suspension of increments. It was accepted in the Dáil on Wednesday, after a two-day debate, by 81 votes to 50.

Mr Gilmore said core pay for those on under €65,000 would not be reduced. "We are of the view that where pay reductions are necessary they must be introduced on a graduated basis and those on the highest levels of pay must bear the greatest burden."