Ministers' 10% pay cut will be permanent

MINISTERS OF State will take a permanent 10 per cent reduction in pay, the Department of Finance has confirmed.

In Budget 2009, Minister for Finance Brian Lenihan announced that Ministers of State, as well as members of the Government, would surrender 10 per cent of their pay in a voluntary contribution.

Since then, Ministers of State have effectively “gifted” 10 per cent of their salaries back to the State but remained entitled to a full pension. Under the new arrangements, the reduced level of pay will be permanent and will affect their pensions.

Ministers of State currently earn about €150,000 a year.

The report of the Review Body on Higher Remuneration recommended public servants on this pay grade should have their salaries reduced by 8 per cent.

Former president Mary Robinson yesterday said that, although her pension was not cut in the Budget, she intended to voluntarily take a 10 per cent cut.

Ms Robinson said it was important that people in positions such as her own contributed more and that she now intended to take a second voluntary 10 per cent reduction in her pension this year.

“I gave a voluntary 10 per cent and I will give another 10 per cent so it will be 20 per cent next year,” Ms Robinson told RTÉ news.

“It’s toughest for those who are on the margins. Those who are unemployed, those who are on social welfare and those on very low incomes. And I think it is really important that we try to have as fair a society as possible . . .”