The Government will tomorrow reveal its proposals to cut the €1.5bn bill for allowances for over 290,000 State employees.

Minister for Public Expenditure & Reform Brendan Howlin has pledged to secure savings of €75m this year, and €150m in each of the following two years.

Allowances and premium payments account for €1.5bn of the public sector pay bill.

They include teachers’ qualification allowances, locomotion and rent allowances for gardaí, female underwear allowances in the Defence Forces, and allowances for working in meat plants.

Unions argue that many allowances count as pay and cannot be cut under the Croke Park Agreement.