The pay freezes, combined with the increases charges and levies, were imposed on everyone, and the lower paid suffered hugely.
The CPSU estimates that on average a Clerical Officer on an annual salary of €35,000 a year lost €100 a week in net take home pay as a result of the cuts before the impact of the Haddington Road Agreement.
This is a huge cut in take home pay for a family or individual on a low income. This is a loss of at least €5,200 a year, before adding the impact of the foregone increases and increments, and the increased hours imposed under the Haddington Road agreement.
- FEMPI CUTS – €36 A WEEK FOR CLERICAL OFFICERS
For annual salary rates below €125,000 the rates of reduction are as follows:
- 5% on the first €30,000 of salary
- 7.5% on the next €40,000 of salary
- 10% on the next €55,000 of salary
The impact at the mean of the Clerical Officer scale was in the order of 5% or €1500 gross per annum, going up to 5.8% at the max of the SO or €2625 gross per annum.
In weekly pay terms this means €36 gross for a public servant on €35,000 close to the max of the clerical officer scale.
- PRD – €31 A WEEK FOR CLERICAL OFFICERS
Pension Levy (PRD)
The public service Pension-Related Deduction (PRD) is an income-graduated levy on the pay of pensionable public servants. It is imposed in such a way that increasing rates of deduction are applied to increasing bands of a civil servant’s annual pay.
- First € 15,000 of earnings: exempt
- Earnings between € 15,000 and € 20,000: 2.5%
- Earnings between € 20,000 and € 60,000: 10%
- Earnings above € 60,000: 10.5%
The cost in real terms ranges from €125 at a salary of €20k to €1125 at €30k, €2125 at €40k and €2625 annually at the max of the SO scale
In weekly pay terms this means €31 for a public servant on €35,000, close to the max of the Clerical Officer scale.
- HADDINGTON ROAD AGREEMENT – EXTRA HOURS WORTH AROUND €40 A WEEK FOR CLERICAL OFFICERS
The biggest income impact under the HRA was the additional hours, valued in pay terms at 6%.
The impact of the hours has been difficult and has created significant work life balance challenges for our members. It is unclear what productivity benefits have derived from this measure.
The Union is also seeking the abolition of the gross week measure, which has an impact on assessing overtime rates. Currently it stands at 43.25 hours following the HRA. This method of calculating overtime rates on a gross week basis makes no sense, given that the calculation is achieved by adding notional lunch breaks of 5 days x 1.25 hrs, this being the old lunch break length under the historic conditioned hours in the Civil Service. It bears no relevance to current circumstances.
We are also seeking the review of actual overtime rates.
- UNIVERSAL SOCIAL CHARGE – €30.56 WEEKLY FOR CLERICAL OFFICER
- 1.5% up to €12,012
- 3.5% from €12,012.01 to €17,576
- 7% from €17,576.01 to €70,044 and 8% thereafter
A public servant who is earning €35,000 per year will pay the Universal Social Charge at a rate of 1.5% on the first €12,012 which comes to €180.18, 3.5% on the next €5,564 which comes to €194.74 and 7% on the balance of €17423.99 which comes to €1219.68.
In total this person will pay €1594.60 per year or €30.56 weekly
In weekly pay terms this means €30.56 for a public servant on €35,000 which is close to the maximum of the Clerical Officer scale.