Government Buildings, Dublin.

The Government today announced details of a pay ceiling for senior roles in the Irish public service and chief executives in commercial State companies.

The Government has agreed to the introduction of :

• a general pay ceiling of €200,000 for future appointments to higher positions across the public service;
• a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies

Where legislative amendments are required to give effect to the decisions (i.e. for Statutory Office Holders such as the Judiciary) the Minister is to bring forward legislative proposals shortly to the Oireachtas.

While the above provisions will apply to new appointments to posts, the Government has given detailed consideration to the potential legal and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents (other than the Judiciary) whose salaries are in excess of the proposed salary ceilings.

Voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the proposed pay ceiling of €200,000 for the public service and €250,000 for CEOs of State companies will be sought.

Public Expenditure and Reform Minister Brendan Howlin said: "In light of the ongoing severe economic conditions facing the country there is a need for leadership to be shown by those who hold high office across the public sector. The Government supports a strong policy of pay restraint within the public sector, including the application of pay caps. On assumption of office the Taoiseach, other members of the

Minister for Public Expenditure and Reform Brendan Howlin TD

Government and a number of other officeholders have, in line with that commitment, voluntarily reduced their salary rates, with the Taoiseach’s salary now set at €200,000."

In imposing the pay ceilings for new appointees, the Government said it recognises that in a small number of cases exceptions may be necessary. Such exceptions will be limited to instances where the exception is for a role of substantial importance in the public service or a l State company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exceptions are subject to the prior approval of the Minister for Public Expenditure and Reform.