Minister Brendan Howlin has told the Dáil that the public service pay bill will fall by €400m next year. By the end of the year, the numbers employed in the public service will be below 300,000 and next year the Government plans to cut the size of the sector by another 6,000.
This reduction of 37,500 or 12% of staff from 2008 numbers is significant and poses enormous challenges, the Minister said.
However, he also said there will be some ''limited recruitment'' to the public service in early 2012. ''I want to move towards more targeted recruitment across a range of disciplines to enhance the skills and expertise available to policy makers in the coming years,'' he stated.
Because of reduced numbers, pay cuts and the ongoing pension related deduction, the overall cost of paying public servants will have fallen by €3.5 billion or 20% over the seven year period from 2008 to 2015.
The Minister said he expects all public services bodies to address efficiencies in their systems and achieve additional cost savings, through the introduction of new working arrangements, including new rosters.
He said that in 2012, public service bodies will have to achieve savings in respect of overtime of 10% and in allowances and premium payments of 5%. The department of public expenditure and reform will lead a review of allowances and premium payments in consultation with all departments early next year.
The Minister also announced plans to overhaul public service paid sick leave arrangements.
