Ministers are introducing legislation to further reduce the salaries paid to top executives in public and semi-public institutions, the Financieele Dagblad says on Tuesday.

Ministers want to reduce top public sector salaries by a further 25% to bring them down to more socially acceptable levels, the FD says. At the beginning of last year, the maximum income for someone working in the public sector was cut to 130% of a minister’s salary.

The current limit, including expenses and pension contributions, puts a ceiling of almost €170,000 a year on public sector pay. An estimated 300 officials currently earn more than this, the FD says.

But if the new lower pay rate is introduced, it will affect around 1,000 people.

Jobs

The FD says the Council of State, the most senior government advisory body, has warned against the change, pointing out that salaries have only just been reduced.

‘Nor is it clear why there are no concerns about the impact of the changes on the public and semi-public sector in the jobs market,’ the council said.

Public sector bodies have also said the new cut will make it difficult to attract good people to top jobs.