The Minister for Public Expenditure and Reform has secured government approval of proposals to extend the current public sector pay agreement, the Building Momentum Agreement, to the end of 2023. Public Sector HR Departments have now been instructed to implement the recently ratified pay increases for Public Sector employees*.
The following increases have been confirmed:
– 3% of salary with effect from 2nd February 2022 (backdated)
– 1% of salary or €500, whichever is greater, with effect from October 2022
– 2% from 1st March 2023
– 1.5% or €750 (whichever is the greater) from 1st October 2023.
As with previous pay restorations, this amount will be subject to income tax at your marginal rate.
To avoid paying tax on this pay increase amount, you can redirect it in to your AVC and enhance your income significantly at retirement.
By submitting your information above you confirm that you agree to be contacted by Irish Pensions & Finance in relation to services provided.