Public Sector Wage cuts: An explanation

nesf

The cuts are as follows:

The first 30K: 5%
The next 40K: 7.5%
The next 55K: 10%

So someone earning 40K will pay 5% of 30K and 7.5% of 10K.

(I'm not sure about these last ones except for the 200K one)
For salaries over 125K: 12.5% (?)
For salaries over 200K: 15%



Your actual loss in take-home pay will be less than 5% on the first 30K because it comes out before tax! Thus you get a discount based on how much tax you pay so you won't see as big a loss as the headline numbers in your pay packet.

Drumpot

MY EXAMPLE ( I will stand corrected on this):

Salary - €30,000
Reduction - €1500
Net Reduction = €1500 *.80 = €1200

Cost of reduction in real terms = €1200 per year = €100 per month

nesf

Drumpot wrote: »

MY EXAMPLE ( I will stand corrected on this):

Salary - €30,000
Reduction - €1500
Net Reduction = €1500 *.80 = €1200

Cost of reduction in real terms = €1200 per year = €100 per month

More complex than that because of tax free allowances and similar.

PeakOutput

sounds fair

Euro_Kraut

P12 of this makes its all pretty clear: Net Reductions a different pay levels with the Public Sector


In my case I am down about €1,200 net a year. Since 2008 I have lost €4,600 net on my wage.

ronbyrne2005

What about the garda on 32K basic with 18k in premiums ,allowances etc?

Économiste Monétaire

From Annex D of the Annexes to the Summary [...] document.

Salary| Deduction| %
€30,000| €1,500| 5.0%
€35,000| €1,875| 5.4%
€40,000| €2,250| 5.6%
€45,000| €2,625| 5.8%
€50,000| €3,000| 6.0%
€55,000| €3,375| 6.1%
€60,000| €3,750| 6.3%
€65,000| €4,125| 6.3%
€70,000| €4,500| 6.4%
€75,000| €5,000| 6.7%
€80,000| €5,500| 6.9%
€85,000| €6,000| 7.1%
€90,000| €6,500| 7.2%
€95,000| €7,000| 7.4%
€100,000| €7,500| 7.5%
€105,000| €8,000| 7.6%
€110,000| €8,500| 7.7%
€115,000| €9,000| 7.8%
€120,000| €9,500| 7.9%
€125,000| €10,000| 8.0%
€175,000| €21,000| 12.0%
€200,000| €30,000| 15.0%
€250,000| €37,500| 15.0%

Euro_Kraut

ronbyrne2005 wrote: »

What about the garda on 32K basic with 18k in premiums ,allowances etc?

He is down about a Grand year (net) on his basic pay. No mention of allowance so they stay the same. The overtime budget in the Gardai has been slashed over the past year though. The rate of overtime paid will be about 5% less.

(To be honest not sure if many people earn as much as 18k in allowances)

Euro_Kraut

To save people clicking on the link, the net reduction for a single earner in the Public Service from the Budget Annex.

Salary| Deduction| %
€15,000| €-726| 5.0%
€20,000| €-228| 1.26%
€25,000| €-774| 3.64%
€35,000| €-1,090| 4.17%
€50,000| €-1,218| 3.67%
€75,000| €-2,017| 4.66%
€100,000| €-3,041| 5.72%
€150,000| €-4,888| 6.65%
€250,000| €-14,542| 12.90%


The CPSU will be fuming when they see their members getting a higher percentage cut than others that earn more.

nesf

Euro_Kraut wrote: »

To save people clicking on the link, the net reduction for a single earner in the Public Service from the Budget Annex.

Salary| Deduction| %
€15,000| €-726| 5.0%
€20,000| €-228| 1.26%
€25,000| €-774| 3.64%
€35,000| €-1,090| 4.17%
€50,000| €-1,218| 3.67%
€75,000| €-2,017| 4.66%
€100,000| €-3,041| 5.72%
€150,000| €-4,888| 6.65%
€250,000| €-14,542| 12.90%


The CPSU will be fuming when they see their members getting a higher percentage cut than others that earn more.

Yup, same mistake as in earlier in the year with the Government making progressive gross cuts, not progressive net cuts. Is there anyone who earn 15K a year in the Public Service though who are full-time?

pah

ronbyrne2005 wrote: »

What about the garda on 32K basic with 18k in premiums ,allowances etc?

ROFL 18k in allowances? night duty and w/e allowances work out about 24% of basic so 8k before any overtime.

allowances are calculated as a percentage of weekly basic so allowances are cut by the same percentage as basic pay.

RGS

Looks like the ministers have pulled a fast one with their pay cut.
Lenihan announces a 15% cut which i am sure everyone took to mean 15% from the 1/1/2010--however it now transpires its only a 5% cut as they are including the 10% cut they took earlier in the year.

What a sleight of hand--Keith Barry couldn't pull off that type of trick.

bean na gaeilge

Hi - Sorry but I am a bit confused - I earn less than 30k a year, a good bit less - do I take a 5% cut too or will it be slightly less

BroomBurner

RGS wrote: »

Looks like the ministers have pulled a fast one with their pay cut.
Lenihan announces a 15% cut which i am sure everyone took to mean 15% from the 1/1/2010--however it now transpires its only a 5% cut as they are including the 10% cut they took earlier in the year.

What a sleight of hand--Keith Barry couldn't pull off that type of trick.

No, it's an additional 15%. As per the speech:

Ministers and Secretaries General of Government Departments will take a pay cut of 15 per cent: an overall cut of close to 25 per cent when the pension levy is taken into account.

RGS

Broom Burner its been confirmed by RTE that its only a 5% cut from January 2010--they are factoring in previous cuts ino the headline total.

nesf

bean na gaeilge wrote: »

Hi - Sorry but I am a bit confused - I earn less than 30k a year, a good bit less - do I take a 5% cut too or will it be slightly less

It's 5% of Gross before Income Tax, PRSI and the pension levy etc are included. So depending on how much you earn it'll most likely be under 5% in terms of after tax pay lost unless you earn so little that you pay no tax, PRSI or levies.

Mayo Exile

Was there anything said about increments in public sector pay today? Have they been frozen along with the actual cuts in PS pay?

TheDriver

no mention of anything other than pay cuts Mayo Exile so no change overall except with the pay cut.

Ciarán_Dublin

So the 5% deduction for people earning under 30k is from the very first cent?

Don't know how I cope with this, since October 08 I've gone from:

Oct 08: 34,000
Nov: 20,400
Pension Levy: 18,768
Sep: 15,375
Oct: 12,812
Jan 2010: 12,150 (And I'm not receiving anything towards my pension now either)

All before tax and deductions.

I can't even claim welfare!

Wishbone Ash

Mayo Exile wrote: »

Was there anything said about increments in public sector pay today? Have they been frozen along with the actual cuts in PS pay?

I don't think they could legally freeze increments without negotiating a change of contract.

Dannyboy83

Euro_Kraut wrote: »

The CPSU will be fuming when they see their members getting a higher percentage cut than others that earn more.

You're mistaken there, the Communist party of the Soviet Union are long gone.;)

Darwin

Wishbone Ash wrote: »

I don't think they could legally freeze increments without negotiating a change of contract.

After all the cuts this year, it would appear contracts are not worth the paper they are written on.