Pension Levy Under Fire as Dail Debates Cuts

The Dáil is to debate the Government's unpopular spending cuts package, which is aimed at saving €2bn this year.

Legislation dealing with the public service pension levy is to be introduced by the beginning of next month.

With the majority of people previously willing to accept a cut in actual income, this replacement proposal has not been well-received. Public service unions have reacted angrily to the pensions levy on public servants, which will cost an average of 7.5% of gross income.

Fine Gael leader Enda Kenny yesterday described the plan as a sticking plaster to cover a gaping wound in the public finances.

While Labour leader Eamon Gilmore claimed the Government had added to the difficulties and increased public confusion, while Sinn Féin's Caoimhghín Ó Caoláin urged the Government concentrate on job creation rather than spending cuts.

Why should us, as the Irish Nation, suffer the consequences of the government's inept approach to running our country. The lack of leadership, common sense and logic that this set of ministers has is seriously disheartening. We need a leader, someone who is willing to do all is necessary to get our economy back on track, WITHOUT making the people suffer.

The pension levy rates are as follows:

A person earning €15,000 gross would pay a pension levy of 3% and the levy rises gradually thereafter.

* 5% on a salary of €25,000
* 6.4% on €35,000
* 7.2% on €45,000
* 7.7% on €55,000
* 8.1% on €65,000
* 8.5% on €85,000
* 8.8% on €100,000
* 9.2% on €150,000
* 9.4% on €200,000
* 9.6% on €300,000.