Public Service Pay and Pensions Act 2017

PART 1 Preliminary and General

1. Short title and commencement

1. (1) This Act may be cited as the Public Service Pay and Pensions Act 2017.

(2) Save where provided otherwise, this Act shall come into operation on 1 January 2018.

2. Interpretation

2. (1) In this Act—

“Act of 2009” means the Financial Emergency Measures in the Public Interest Act 2009;

“Act of 2010” means the Financial Emergency Measures in the Public Interest Act 2010;

“Act of 2013” means the Financial Emergency Measures in the Public Interest Act 2013;

“Act of 2015” means the Financial Emergency Measures in the Public Interest Act 2015;

“covered public servant” shall be construed in accordance with section 3;

“enactment” means an Act or a Statutory Instrument or any portion of an Act or Statutory Instrument;

“Minister” means the Minister for Public Expenditure and Reform;

“No. 2 Act of 2009” means the Financial Emergency Measures in the Public Interest (No. 2) Act 2009;

“non-covered public servant” shall be construed in accordance with section 3;

“public servant” has the same meaning as it has in the Act of 2009;

“Public Service Stability Agreement” means the document entitled the “Public Service Stability Agreement 2018-2020” published by the Workplace Relations Commission on 8 June 2017;

“recognised trade union or staff association” means a trade union or staff association recognised by the Minister for the purposes of negotiations which are concerned with the remuneration or conditions of employment, or the working conditions of employees.

(2) A reference in this Act to notification in writing of assent to be bound by the terms of the Public Service Stability Agreement is a reference to notification in writing of assent to be bound, for the duration of that agreement, by its terms, however that assent is expressed in the written notification.

(3) For the purposes of section 3, if the Irish Congress of Trade Unions notifies, in writing, the Workplace Relations Commission, on behalf of the recognised trade union or staff association referred to in the relevant provision of that section, that the union or staff association assents to be bound as mentioned in that provision, then that notification shall be treated as a notification in writing, to that Commission, by the union or staff association that it assents to be so bound.

3. Covered and non-covered public servants - meaning

3. (1) A public servant shall, unless he or she is by virtue of subsection (2) a non-covered public servant, be a “covered public servant” for the purposes of this Act.

(2) Where subsection (4) or (5) applies to a public servant and the trade union or staff association referred to in subsection (4) or (5) has not notified to the Workplace Relations Commission, in writing, its assent to be bound by the terms of the Public Service Stability Agreement, then that public servant shall be a “non-covered public servant” for the purposes of this Act.

(3) Subsection (2), so far as it provides for the case of a public servant who, as mentioned in subsection (5), is not a member of a recognised trade union or staff association, is subject to subsection (6).

(4) This subsection applies to a public servant who is a member of a recognised trade union or staff association.

(5) This subsection applies to a public servant who is not a member of a recognised trade union or staff association if other public servants, who fall into the grade or category of public servant into which he or she falls, are members of such a union or association.

(6) In the following circumstances, that is to say, a case of a public servant (the “first-mentioned public servant”) who is not a member of a recognised trade union or staff association and the following applies in relation to other public servants who fall into the grade or category of public servant into which the first-mentioned public servant falls—

(a) some are members of one recognised trade union or staff association and some are members of another recognised trade union or staff association (whether the number of such trade unions or staff associations is 2 or is more than 2), and

(b) one, or more than one, of those recognised trade unions or staff associations has notified to the Workplace Relations Commission, in writing, its assent to be bound by the terms of the Public Service Stability Agreement,

then the first-mentioned public servant shall not, by virtue of subsection (2), be a “non-covered public servant” for the purposes of this Act.

4. Repeal

4. (1) The Act of 2009 is repealed.

(2) Subsection (1), in so far as it relates to the repeal of sections 2 to 10 of the Act of 2009, shall come into operation on 1 January 2019.

PART 2 Remuneration - Public Servants Generally

Chapter 1

5. Interpretation (Part 2)

5. In this Part a word or expression that is used in this Part and is also used in the No. 2 Act of 2009 shall have the meaning in this Part that it has in the No. 2 Act of 2009.

6. Further pay restoration and supplemental provisions concerning Part’s effect

6. (1) There shall be effected, in accordance with Chapters 2 to 4, a further restoration of the amount of a public servant’s basic salary, that is to say, a restoration further to that effected by the Act of 2015.

(2) The foregoing reference to a public servant’s basic salary is a reference to that salary as it stood reduced in accordance with enactments passed prior to the passing of the Act of 2015.

(3) The restoration effected by this Part shall apply as regards payment of basic salary occurring on or after the relevant date specified in the provision concerned of this Part.

(4) Where the operation of a provision of this Part results in the basic salary of a public servant being increased above the amount of his or her basic salary as it stood before it was reduced in accordance with enactments passed prior to the passing of the Act of 2015, such increase shall have effect notwithstanding the reference in subsection (1) to an amount of salary being restored.

Chapter 2

7. Restoration of covered public servants’ pay: provisions for 2018

7. (1) The annualised amount of the basic salary of a covered public servant, as it stands adjusted by the relevant enactments, shall—

(a) on and from 1 January 2018, be increased by 1 per cent, and

(b) on and from 1 October 2018, be increased by 1 per cent.

(2) For the purposes of paragraph (a) of subsection (1), the reference in that subsection to the annualised amount of the basic salary of a covered public servant, as it stands adjusted by the relevant enactments, is a reference to the annualised amount of such salary that is payable in consequence of the applicable provision of section 6A or 6C (in each case inserted by the Act of 2015) of the No. 2 Act of 2009.

(3) For the purposes of paragraph (b) of subsection (1), the reference in that subsection to the annualised amount of the basic salary of a covered public servant, as it stands adjusted by the relevant enactments, is a reference to the annualised amount of such salary that is payable in consequence of—

(a) the applicable provision of section 6A or 6C (in each case inserted by the Act of 2015) of the No. 2 Act of 2009, and

(b) paragraph (a) of subsection (1).

(4) Chapter 4 contains supplementary provisions in relation to this and the following sections of this Chapter.

8. Covered public servants: restoration of pay provisions for 2019

8. (1) In respect of a public servant—

(a) who is a covered public servant, and

(b) the annualised amount of the basic salary of whom does not exceed €30,000,

the annualised amount of his or her basic salary shall, on and from 1 January 2019, be increased by 1 per cent.

(2) References in subsection (1) to the annualised amount of the basic salary of a public servant are references to the annualised amount of such salary as it stands payable in consequence of section 7(1).

(3) The reference in subsection (4) to the annualised amount of the basic salary of a public servant is a reference to the annualised amount of such salary as it stands payable in consequence of—

(a) subject to paragraph (b), section 7 (1), or

(b) where subsection (1) of this section applies—

(i) section 7(1), and

(ii) that subsection (1).

(4) In respect of a covered public servant, the annualised amount of his or her basic salary shall, on and from 1 September 2019, be increased by 1. 75 per cent.

9. Construction of certain references for purposes of pay restoration provisions in section 10

9. (1) References in section 10(1) to the annualised amount of the basic salary of a public servant are references to the annualised amount of such salary as it stands payable in consequence of—

(a) subject to paragraph (b) —

(i) section 7(1), and

(ii) subsection (4) of section 8,

or

(b) where subsection (1) of section 8 applies—

(i) section 7(1), and

(ii) subsections (1) and (4) of section 8.

(2) The reference in section 10(2) to the annualised amount of the basic salary of a public servant is a reference to the annualised amount of such salary as it stands payable in consequence of—

(a) subject to paragraphs (b) and (c) —

(i) section 7(1), and

(ii) subsection (4) of section 8,

(b) subject to paragraph (c), where subsection (1) of section 8 applies—

(i) section 7(1), and

(ii) subsections (1) and (4) of section 8,

or

(c) where section 8(1) and section 10(1) both apply—

(i) section 7(1),

(ii) subsections (1) and (4) of section 8, and

(iii) section 10(1).

10. Covered public servants: restoration of pay provisions for 2020

10. (1) In respect of a public servant—

(a) who is a covered public servant, and

(b) the annualised amount of the basic salary of whom does not exceed €32,000,

the annualised amount of his or her basic salary shall, on and from 1 January 2020, be increased by 0.5 per cent.

(2) In respect of a covered public servant, the annualised amount of his or her basic salary shall, on and from 1 October 2020, be increased by 2 per cent.

11. Equal pay for new entrants

11. The Minister shall, within three months of the passing of this Act, prepare and lay before the Oireachtas a report on the cost of and a plan in dealing with pay equalisation for new entrants to the public service.

Chapter 3

12. Restoration of non-covered public servants’ pay: provisions for 2018

12. (1) The annualised amount of the basic salary of a non-covered public servant, as it stands adjusted by the relevant enactments, shall, on and from 1 October 2018, be increased by 1 per cent.

(2) The reference in subsection (1) to the annualised amount of the basic salary of a public servant, as it stands adjusted by the relevant enactments, is a reference to the annualised amount of such salary that is payable in consequence of the applicable provision of section 6A or 6C (in each case inserted by the Act of 2015) of the No. 2 Act of 2009.

(3) Chapter 4 contains supplementary provisions in relation to this and the following sections of this Chapter.

13. Non-covered public servants: restoration of pay provisions for 2019

13. (1) In respect of a non-covered public servant, the annualised amount of his or her basic salary, as it stands payable in consequence of section 12 (1), shall, on and from 1 July 2019, be increased by 1 per cent.

(2) References in subsection (3) to the annualised amount of the basic salary of a public servant are references to the annualised amount of such salary as it stands payable in consequence of—

(a) section 12(1), and

(b) subsection (1) of this section.

(3) In respect of a public servant—

(a) who is a non-covered public servant, and

(b) the annualised amount of the basic salary of whom does not exceed €30,000,

the annualised amount of his or her basic salary shall, on and from 1 October 2019, be increased by 1 per cent.

14. Construction of certain references for purposes of pay restoration provisions in section 15

14. (1) The reference in section 15(1) to the annualised amount of the basic salary of a public servant is a reference to the annualised amount of such salary as it stands payable in consequence of—

(a) section 12(1), and

(b) subsection (1) and, as the case may be, subsection (3) of section 13.

(2) References in section 15(2) to the annualised amount of the basic salary of a public servant are references to the annualised amount of such salary as it stands payable in consequence of—

(a) section 12(1),

(b) subsection (1) and, as the case may be, subsection (3) of section 13, and

(c) section 15(1).

(3) The reference in section 15(3) to the annualised amount of the basic salary of a public servant is a reference to the annualised amount of such salary as it stands payable in consequence of—

(a) section 12(1),

(b) subsection (1) and, as the case may be, subsection (3) of section 13, and

(c) subsection (1) and, as the case may be, subsection (2) of section 15.

15. Non-covered public servants: restoration of pay provisions for 2020 and 2021

15. (1) In respect of a non-covered public servant, the annualised amount of his or her basic salary shall, on and from 1 June 2020, be increased by 1. 75 per cent.

(2) In respect of a public servant—

(a) who is a non-covered public servant, and

(b) the annualised amount of the basic salary of whom does not exceed €32,000,

the annualised amount of his or her basic salary shall, on and from 1 October 2020, be increased by 0.5 per cent.

(3) In respect of a non-covered public servant, the annualised amount of his or her basic salary shall, on and from 1 July 2021, be increased by 2 per cent.

Chapter 4

16. Correction of anomalies consequential on operation of preceding provisions of Part

16. (1) Where the operation of section 7, 8, 10, 12, 13 or 15 results in the basic salary of a public servant to whom the particular section applies being higher than the basic salary applicable to the next immediate point, or (if such is the case) any higher point, on the pay scale that applies to the public servant, the Minister may, having taken into account all of the circumstances that relate to the existence of the differential between the points on that scale—

(a) by direction, increase the basic salary applicable to, as the case may be—

(i) that next immediate point, or

(ii) that higher point, and, if appropriate, one or more of the points below that point,

on that scale to such extent as the Minister thinks fit so as to maintain an equitable differential between the points on that scale, or

(b) determine that in respect of certain categories of public servant to whom that scale applies, the basic salary to be paid, for the time being, to those public servants shall, to such extent as the Minister thinks fit so as to maintain an equitable differential between the various salaries payable to the several public servants to whom that scale applies, be greater or less than an amount provided by a particular point on that scale.

(2) In the case of a public servant who is an employee or officer of the Central Bank of Ireland, a reference in subsection (1) to the “Minister” shall be construed as a reference to the “Central Bank Commission”.

17. Interaction between certain provision of section 6C of No. 2 Act of 2009 and preceding provisions

17. (1) This section is without prejudice to the generality of the provisions of Chapter 2 or 3 and the respects in which those provisions operate to effect a cumulative increase in the annualised amount of the basic salary of a public servant.

(2) In a case in which the particular public servant is a public servant to whom section 6C(2)(b) of the No. 2 Act of 2009 applies, the operation, on 1 January 2018, of that section 6C(2)(b) shall be taken account of, and the necessary computation of the annual remuneration of that public servant by virtue of that provision made, before the operation, required by section 7(1)(a), is performed of applying, on the foregoing date, the percentage increase specified in section 7(1)(a) to that public servant’s basic salary.

18. Provision regarding operation of section 6C(3) of No. 2 Act of 2009

18. (1) Notwithstanding anything in Chapter 2 or 3, for the purposes of the operation of any provision of either Chapter in relation to a public servant to whom section 6C(3) of the No. 2 Act of 2009 applies, every one of the restorations of the amounts of the annual remuneration provided for in that section 6C(3) shall be deemed to have taken effect—

(a) in the case of a provision of Chapter 2, before 1 January 2018, and

(b) in the case of a provision of Chapter 3, before 1 October 2018,

and with the effect that it is by reference to the notional amount of the annual remuneration which that public servant, by virtue of such deeming, enjoys (the “notional annual remuneration”) - rather than the actual annualised amount of his or her basic salary at the particular time - that the computation of the percentage increase specified in section 7 or 12, as the case may be, is to be made.

(2) In particular, subsection (1), as it applies to section 7, has effect so that the operation, required by section 7(1)(b), of applying, on 1 October 2018, the percentage increase specified in section 7(1)(b) is performed by reference to the amount of the notional annual remuneration as that remuneration stands increased by the percentage specified in section 7(1)(a).

Chapter 5

19. Public servants falling within certain pay range: provision to complete restoration of their pay

19. (1) In this section, references to—