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Public Expenditure and Reform Minister Brendan Howlin announced the introduction of pay ceilings for higher posts across the public service, and for CEO posts in Commercial State Companies.

The Minister stated

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 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.

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 these 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. The Government has decided to seek, in the first instance, 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 Commercial State Companies.

Read the full press release here.