Dáil Éireann Debate, Tuesday - 14 July 2026
684. Deputy Richard Boyd Barrett asked the Minister for Children, Disability and Equality the estimated cost of the maximum pay uplift proposed by trade unions and Section 39 providers through the KOSI Section 39 process; the number of staff that would have been covered in said proposal; and based on this number, the estimation of the cost of funding full pay parity between Section 38 and Section 39 workers in the maximum scenario. [53363/26]
View answerThe WRC pay funding agreement reached last year between Government Departments and unions includes funding for a 9.25% pay increase for workers in community and voluntary health and social care organisations. Taken with the October 2023 Agreement of an 8% increase, this amounts to a 17.25% pay funding increase over a 3½ year period.
The agreement recognises that staff in these organisations should be fairly paid for the vital work they do. The agreement also includes an automatic link to future public sector pay agreements for these workers, to match the terms of all future pay adjustments.
This agreement improves the ability of vital organisations to actively recruit and retain staff, thereby enhancing the sustainability of services in the sector.
This increase will benefit around 17,500 workers in disability voluntary organisations and is equivalent to the current Public Sector Agreement.
In funding terms, the deal was estimated to cost up to €140 million per annum in additional investment across all the grant funding arrangements in scope under Section 39 (Health Act 2004), Section 56 (Child and Family Agency Act 2013), Section 10 (Housing Act 1988) and Section 40 (Domestic, Sexual and Gender-Based Violence Agency Act 2023). For those HSE services funded by the Department of Children, Disability and Equality, the agreement involves an estimated uplift of €70 million for Disability services.
Funding increases to cover the cost within individual service providers are assessed and validated by reference to the statutory funding arrangements in place with the relevant Agencies on the date of the agreement. The actual costs incurred will be finalised once payments of all phases is completed for validated claims. The final 2% phase falls due for payment on 1 October 2026.
As part of the agreement a comprehensive data gathering exercise is being conducted on the pay and funding arrangements in the sector. The parties agreed that this exercise is crucial in order to create a shared understanding of the sector. Its outcome can inform targeted measures on the low pay issues that affect the delivery of services and the long-term viability of organisations. The exercise is expected to be finalised in the coming weeks.
