A contract ratifying pay hikes between 10.25 per cent to 17.3 per cent over the coming 2.5 years has been approved by trade unions representing approximately 385,000 public and civil service workers. The initial round of pay rises is expected to roll out right away, however, bearing in mind previous agreements, there may be some delays in the system. It is anticipated that the majority of public sector workers will see first-time increases and backlog payments within 2 to 3 months.
Unions have expressed their desire for the first instalment to be completed by the end of May to avoid overlapping with the hike that is due in June. By the closing of the year, all relevant employees should have seen a pay boost ranging from 4.25 to 7.5 percent. This will also influence other workers and public sector retirees whose pay is connected to public sector rates.
The wage agreement reached between the government and unions a month back has been officially ratified by the unions. This clears the path for the Department of Public Enterprise and Reform to give their consent and for the varied employers involved to put the deal in action. The deal will initially affect an estimated 385,000 state employees, with the number expected to swell with the addition of public service retirees who will see pension increases as well as other workers whose salaries are tied to Civil Service grades.
The health sector will see the most impact, with around 140,000 workers, followed closely by nearly 125,000 employees, mostly teachers, in the education sector. Additionally, the deal will affect 46,000 civil servants, 32,000 local authority employees, approximately 15,000 gardaí, and 8,000 Defense Forces members.
The terms of the agreement dictate that employees will see a minimum pay increase of 10.25 per cent over the 2.5 year span of the contract. Larger percentage increases are hedged for those on the lower pay scale. The first increment will be backdated to January 1st of this year, and will result in those earning up to €50,000 annually receiving an extra €1,125 every year, or approximately €90 monthly before tax. Higher earners will see a 2.25 per cent rise, with top bracket earners potentially receiving nearly €500 monthly increments before tax.
The distribution of funds may differ from one category to another. It is expected that individuals employed by the good offices or compensated by government divisions will be the first to obtain their finances.
The ultimate pay compromise, which was settled in late 2022, resulted in the majority of civil servants obtaining their pay rises within a few months. In the educational sector, those who were paid directly by the Education Department usually got their pay within the same period, preceding those working for the Education and Training Boards.
However, in the health sector, substantial delays were noted. The Irish Nurses & Midwives Organisation (INMO) General Secretary, Phil Ní Sheaghdha, mentioned that some of her association’s members waited for up to eight months. She hopes for the salary to be distributed next month, but it seems unlikely due to the assortment of various employers delivering services on behalf of the HSE and Health Department.
When the payments are eventually received, will they be retroactive?
They certainly will. Workers on the lower pay scale, earning up to €50,000, will receive about €90 for every month since the beginning of the year, whereas others will receive 2.25 percent of their total pay. Starting from June, there will be an additional 1% increase, and an extra 1% or €500, whichever is greater, from October.
And what about the remainder of the agreement?
Additional raises have been scheduled for March, August, and September next year, with the final hike based on a local bargaining provision to address claims specific to their ranks or sectors.
The assumption is that all future increases will be dispersed on schedule, as the employers have been given sufficient notice.
Are there other facets to the deal?
The focus of the unions is on the local bargaining aspect, which envisages a 1% increase next year and a further 2% hike in the subsequent national pay agreement.
On the other hand, the government sees parts of the agreement relating to skills, work practices, and technology as avenues for improving efficiency.
Additionally, the deal includes provisions for employing direct personnel where feasible, as opposed to workers from agencies or contracted entities. Both parties are dedicated towards resolving issues impacting firefighters, ambulance teams, and local authority workers.