Minister for Health Mary Harney has confirmed to the Oireachtas Health Committee that 3,143 of Health Service Executive employees are seeking to avail of the redundancy and retirement scheme.
Ms Harney said that 3,775 people had applied but 662 had withdrawn since they had applied ten days ago.
Minister Harney said a final accurate figure could not be determined as there may be more withdrawals.
She said that the final figure for the cost could not be determined until the breakdown in terms of grades and salaries were calculated, but she said the €250m set aside would probably be excessive.
The estimated saving for next year was €120m, she said.
She said staff could not return and there would be no refusals as the scheme was not oversubscribed.
The minister was speaking at the presentation of her department's estimates for HSE spend. The figures show that the State body achieved €35m in savings on administrative costs last year.
A number of committee members focused on the €120m spent on agency staff.
The minister said that figure would be reduced substantially next year as efficiencies under the Croke Park agreement are phased in.
Minister Harney said she expected substantial savings in the public procurement bill, especially on legal fees.