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Unions agree deal to give 1% pay rise to public servants this year and another in 2022

The package was ratified at a meeting this morning.

Image: Shutterstock/Gena96

IRELAND’S PUBLIC SERVANTS will receive pay increases of up to 3% over two years after unions overwhelmingly voted to back the new public sector pay agreement today.

Thirteen out of 17 unions affiliated with the Irish Congress of Trade Unions, who collectively represent the majority of Ireland’s public servants, ratified the ‘Building Momentum’ package at a meeting this morning.

The agreement will cost €906m or the equivalent of around 4% of the 2021 public service pay bill, spread over three years.

It will come into force with immediate effect and run until the end of next year, with a 1% pay rise set to kick in October and another 1% increase to kick in in October 2022.

Those on lower incomes will receive pay increases of €500 each year instead, which will see them get bigger pay rises than higher paid staff (who will receive the 1% increases).

And unions that submit pay claims for specific workers will be paid a further 1% increase on 1 February 2022 from a new ‘sectoral bargaining fund’.

The agreement will also establish a new body by the end of next month to make recommendations about reversing mandatory extra hours for public servants which were introduced under the Haddington Road agreement in 2013.

ICTU said that the deal contains strong protections against the privatisation and outsourcing of public services.

Minister Public Expenditure and Reform, Michael McGrath expressed confidence that the deal would give stability to public servants and the public who use services they provide.

“The agreement is fair, affordable and sustainable, and it recognises the economic challenges currently facing the country,” he said.

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“Most importantly, the agreement paves the way for certainty on pay and industrial relations over the next two challenging years.”

Fórsa general secretary Kevin Callinan, who chairs ICTU’s Public Services Committee, added that the agreement would bring benefits for those who use and provide public services.

“The pay terms represent a realistic and acceptable approach to incomes, and they are substantially skewed towards lower earners in a very challenging context of limited resources,” he said.

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