Irish civil servants bear the brunt as public sector pay is slashed in £3.6bn cost-cutting Budget

Irish civil servants are to face massive pay cuts in one of the toughest Budgets in the nation’s history.

Revealing an unprecedented 4 billion euro (£3.6bn) cost-cutting package,Irish Finance Minister Brian Lenihan  admitted Ireland had been shaken by the dramatic collapse of its economy.

But he insisted the country was now turning a corner and Irish people would not have to suffer such a punishing Budget again.

‘The effort demanded of every citizen in this Budget is substantial, but it is the last big push of this crisis,’ he said.

‘Further corrections will be needed in the coming years, but none as big as today’s.’

Among the most contentious of the hard-hitting measures is a drop in the pay of public sector workers, with salaries cut from 5 per cent for those on 30,000 euro (£27,000) or less up to 8 per cent for those earning up to 125,000 euro (£114,000).

Top-earning public and civil servants will take a salary cut between 8 per cent and up to 15 per cent for those on more the 200,000 euro (£182,00), with the Taoiseach taking a 20 per cent cut.

Social welfare payments affected include child benefit payments, down 16 euro (£15) a month, with changes to jobseekers allowance meaning younger recipients will get around half the standard rate.