The Government and trade unions have agreed on a new pay deal that will see workers in the public sector receive pay increases of up to €2,000.
Some 300,000 public servants will receive the money in a phased basis, between January 2016 and September 2017,
In the first phase of the deal in 2016, the salary level above which the pension levy is payable increases to €24,750, up from €15,000. Also, annual salaries of up to €24,000 are to increase by 2.5 per cent through a partial reversal of the 2010 public service pay cut with yearly salaries of between €24,001 and €31,000 rising by 1 per cent under the same mechanism.
The second phase will see the pension levy threshold rise to €28,750, and under the third phase, annual salaries of up to €65,000 are to increase by €1,000 per annum.
Minister for Public Expenditure and Reform Brendan Howlin has said that the deal would cost €566 million over three years, and added that the measures were affordable and that they would “secure a peaceful industrial relations environment until September 2018”.