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Further public sector pay limits on the cards, 5,000 may be hit

Wednesday 14 November 2012

Up to 5,000 people would be affected if the government reduced the maximum salary in the public sector to that of a government minister, home affairs minister Ronald Plasterk told the NRC on Wednesday.

The figure is a rough estimate, a spokesman for the minister confirmed.

On Tuesday the senate approved new legislation limiting salaries in the public and semi-public sector to a maximum of 130% of a government minister’s pay packet.

10 years

The new law, which has been 10 years in the making, effectively seals top pay scales in the public sector at around €190,000. Some 700 people will see their pay packages cut from January 1, the NRC said. The lower pay levels are being phased in over a four-year period.

But the new cabinet has plans to reduce the upper limit in line with a ministerial salary at a later date.

A Dutch government minister earns €144,000 a year plus expenses according to the government website rijksoverheid.nl.

The legislation passed on Tuesday also fixes golden handshakes in the public sector at a maximum €75,000 and bans bonuses, profit sharing schemes and other forms of performance-related pay.

Across the board

The new rules will cover all government departments, plus the healthcare system, housing corporations, education and other public sector bodies. Voluntary agreements are already in place in most areas but are widely flouted.

For example, in September the Financieele Dagblad reported one third of housing corporation chiefs earned more than the maximum agreed for public sector officials.

Of the 285 pay packages which came under the spotlight, 83 broke the official pay barrier. And 25% of the big earners were in charge of small institutions with fewer than 10,000 houses, the paper said.

Should public sector pay be cut further? Use the comment box below

© DutchNews.nl


Readers' Comments

The other side is that with their incomes reduced - imagine how many ordinary people could have a job where they earn a modest amount.

Great that this includes the ever grabbing housing corporations.

It might even give the private sector a boost - with all those rats who want to earn larger sums of money!

By Gemma | 14 November 2012 5:00 PM

It could be a step in the right direction: no system will ever be perfect, but there is always plenty of space for discussing any improvements to make incomes fairer for all, but don't ever expect equality.

Unfortunately the bank cartels own our world & are still worshiped like gods: they are solely responsible for the big mess that we have now: nobody should die starving to let the greedy few control our lives.. "V"

By The visitor | 14 November 2012 10:10 PM

Further public sector pay limits on the cards, 5,000 may be hit. If I understand correctly your government has adopted the alphabet policy, at the moment its plan B.

By Terence Hale | 15 November 2012 4:50 AM

great so the good capable people go private....and what ever is left take whatever is left and run important govt posts.... just what we need in trying times

By Steve | 15 November 2012 7:05 AM

What a joke, the people will suffer.

By phil | 15 November 2012 10:21 AM

the private sector is also cutting salaries and bonuses across the board thankfully so there will be no place to run very soon.

By bas | 15 November 2012 11:05 AM

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