Public sector workers were earning up to 25 per cent more than their counterparts in the private sector in 2006, according to a study undertaken by researchers at the Economic and Social Research Institute (ESRI).
A paper written by ESRI researchers Elish Kelly, Seamus McGuinness and Philip O'Connell, which uses data from National Employment Surveys to assess the impact of pay increases under the Public Sector Benchmarking Body, shows that the overall pay premium for State employees rose from 9.7 per cent in 2003 to almost 22 per cent in 2006.
However, when the value of pensions is included in with the figures, the overall pay gap between public sector and private sector employees was almost 25 per cent.
The earnings gap between State employees and private sector staff increased from 5 to 23 per cent for males and from 14 to 21 per cent for females during the three year period, the study shows.
The study shows no support for the recommendations of the 2007 Benchmarking report or the general Review Body Reports that called for further upward adjustments in the salary levels of some senior public service grades.
Richard Bruton, Fine Gael finance spokesman, said the ESRI report confirmed his party's stance that there was "no justification " for implementing an award which was not linked to delivering real change in the public service
“The tragedy is that this Fianna Fáil Government has repeatedly tried to buy its way out of problems, instead of confronting them. In the process, Fianna Fáil has trapped committed public servants in a system which is failing them," Mr Bruton said.
He said the system refused to reward success or sanction failure, paid money without demanding performance, and moved public servants around the country "like pawns on a board".
"If the Government fails to confront the high cost structures that have been allowed to develop in the systems for delivering public services in Ireland, it will sleepwalk into a Budget in December where the only option is to cut front-line entitlements for people, or raise taxes. That would be unforgivable,” the Fine Gael deputy leader said.
