The government are set to announce a reward of a one-off bonus payment for Covid frontline workers to acknowledge their work throughout the pandemic.
The details of the recognition payment are expected to be finalised and announced alongside next month’s budget on October 12th.
Minister for Public Expenditure Michael McGrath will seek approval from leaders of the three government parties over the coming days.
Mr McGrath will tap the EU Brexit adjustment fund of 1.1 billion euro to boost his budget day coffers, on top of the 4.7 billion euro he is to spend, bringing the overall spending package to 5.8 billion euro.
The reward will be paid in the form of annual leave and in some cases will be a monetary payment and is estimated to cost the exchequer “many tens of millions of euro”.
Concerns have been raised about the recognition payment, such as who will qualify and whether workers in essential sectors such as retail and other low paid staff who worked throughout the pandemic will be eligible for the payment.
A source told The Irish Examiner: "The costs are a chunk, and the question is where do you draw the line. Is it the gardai, is it prison officers? It is tricky.”
Minister McGrath will be looking to cover the cost of the payment out of this year's revenues, and so sources within the government have said the recognition payment will not impact the Budget of 2020.
A lower than expected deficit in the budget is said to have allowed more ‘wiggle room’ for the payment.
Minister McGrath told the Irish Examiner the priorities of Budget 2020 include building on the economic recovery that is already well underway, making sure that public services are working well after the past 18 months and to make progress in repairing the public finances to ensure we are on a sustainable path.
He said: “Covid isn’t over, but I think we can face the future with a renewed sense of confidence.
“The budget is a great opportunity for us to reset our key priorities as a society and an economy after all that we have been through.”
