Overview of Pay Adjustments in Irish Health Sector per Circular

Overview of Circular 10/2022: Pay Adjustments for the Irish Department of Health Staff

On 18 October 2022, the Department of Health in Ireland issued Circular 10/2022, which details the application of pay increases for public health sector employees following the amendments made under the "Building Momentum - A New Public Service Agreement 2021-2023." This circular aims to clarify the timing, scope, and calculation methods for salary adjustments due on 2 February 2022 and 1 October 2022, as well as the related pension and contribution implications.

Scope and Application of the Pay Adjustments

This circular primarily targets human resources departments within the Health Service Executive (HSE), including CEOs and HR managers of Non-Commercial State Agencies (NCSAs). It applies to all eligible public health sector employees whose salaries are governed by the relevant collective agreements and sectoral pay scales. The adjustments are part of Ireland’s efforts to implement the agreed pay rises as stipulated in the amended Building Momentum agreement.

Details of the Pay Increases

Implementation Dates and Percentage Increases

• 2 February 2022: A general pay increase of 3% was implemented, reflecting the agreement's provisions.
• 1 October 2022: An additional minimum increase of 1%, or €500 in annual salary terms if higher, was applied.

In addition to these percentage increases, the circular specifies a 3% adjustment on allowances that are considered part of pay, with rounding rules applied to annual, weekly, and hourly pay scales to ensure consistency.

Conditional Application Based on Previous Pay Restorations

The circular emphasizes that employees who received more than 4% FEMPI (Financial Emergency Measures in the Public Interest) pay restoration under Circular 6/2022 are not eligible for further adjustments on the specified dates. For those who did receive FEMPI restorations, the timing and amount of subsequent pay increases depend on the extent of prior restorations, with specific provisions outlined to ensure fair application of adjustments.

Special Considerations for Pensioners and Contributions

Impact on Pensions

Pensions in payment under the Single Public Service Pension Scheme are uprated annually in line with the Consumer Price Index (CPI). Therefore, pensions for eligible retirees are not directly affected by the pay adjustments detailed in this circular, but are subject to CPI-based increases.

Additional Superannuation Contributions (ASC)

The circular specifies that contributions towards the ASC, as well as pension scheme contributions for spouses and children, will be deducted from any arrears arising from the pay adjustments. The rates for these contributions continue to be based on the rates set in 2020.

Legal and Administrative Context

This circular is issued under the authority of the Minister for Health and aligns with the legal framework of the Constitution of Ireland and relevant sector-specific legislation, including the Public Service Pay Pensions Act 2017. It provides clear guidance for HR departments to implement the agreed pay increases accurately and consistently, ensuring compliance with the sector’s collective bargaining arrangements.

Summary of Key Points

1. Pay increases of 3% from 2 February 2022 and at least 1% from 1 October 2022, with adjustments for allowances.
2. Application depends on prior FEMPI restorations, with specific provisions to address different restoration scenarios.
3. Pensions are uprated separately, following CPI, and are not directly affected by these adjustments.
4. Contributions towards pensions and superannuation are deducted from arrears, following established rates.

Overall, Circular 10/2022 provides a comprehensive framework for implementing the recent pay adjustments within Ireland’s public health sector, ensuring transparency, fairness, and legal compliance in the process.