State welcomes overwhelming approval of historic pay agreement for Health and Social Care Workers from their trade unions

The government has welcomed the overwhelming approval from trade union members of the unprecedented agreement reached at the Workplace Relations Commission (WRC) in March to fund Health and Social Care and Homeless sector employers. The agreement represents a 9.25% pay increase to for up to 40,000 workers – an increase equivalent to the current Public Sector Agreement 2024-2026.

The agreement recognises that staff in these sectors should be fairly paid and appropriately recognised for the vital work they do.

This parity of treatment is an important step forward. In funding terms, the deal amounts to an increase of around €140 million per annum in additional investment for these organisations to support delivery of their services and supports.

The Minister for Children, Disability and Equality, Norma Foley, welcomed the approval, saying “I am really pleased to welcome the decision of the workers providing vital supports and services, who have voted to accept this new pay deal. This deal will provide a 9.25 per cent pay increase for these dedicated workers and matches the increases provided in the most recent public sector pay deal. Not only will it be backdated to October last year, with pay increases this year and next, but for the first time, there will be an automatic link to all future public sector pay agreements for these workers, so that they qualify for all future pay increases. Thank you to the workers, the unions, state officials, the Workplace Relations Commission and everybody involved who brought us to this point. It is a really positive step forward.”

The offer is backdated to start from October 2024 with implementation over a two-year period to October 2026, by which point a successor to Public Sector Agreement 2024-2026 is anticipated. The Department of Children, Disability and Equality secured €30 million in additional funding for the HSE and €8.5 million in additional funding for Tusla in budget 2025, to cover the estimated cost of the agreement for 2024 backdated and 2025. This funding will be made available to the relevant organisations without delay.

Organisations impacted by the new pay agreement should apply to their relevant funding bodies without delay, in order for their workers to receive the backdated pay increases as soon as possible.

Minister of State for Disability, Hildegarde Naughton said: “I believe that endorsement of this agreement represents a significant and meaningful outcome for workers, with improved pay terms now and targeted measures to further address pay into the future. I want to acknowledge the constructive engagement of all parties and to thank the WRC for its support and assistance in reaching this agreement.”

Furthermore, in recognising that some of the organisations also receive additional public funding from schemes outside of this agreement, organisations can use this agreement to obtain equivalent increases in funding from the relevant departments and/or statutory agencies.

The agreement reached includes the establishment of a joint monitoring group with the funding agencies, employer representatives and staff union representatives to ensure practical issues and disputes can be resolved in a timely and effective manner.

Staff working in these independently operated organisations have been employed using a multiplicity of terms and conditions and various public funding sources. A shared understanding of pay and funding across the sector is essential and an independent body will examine pay and funding across the sector. This will enable measures targeted at low pay in the sector can be considered in future agreements.

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The pay terms are backdated to start from October 2024 with implementation over a two-year period to the end of 2026:

• 2.25% on 1 October 2024
• 1 % on 1 April 2025
• 2% on 1 November 2025
• 2% on 1 April 2026
• 2% on 1 October 2026

Organisations impacted by the new pay agreement should apply to their relevant funding bodies without delay, in order for their workers to receive the backdated pay increases as soon as possible.

The organisations delivering these services range from multi-national operations with hundreds of employees to local community-based organisations. These workers are employed in voluntary and community organisations that are not public bodies.

The organisations are funded 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).

Funding for services commissioned through tendering arrangements are not covered in this agreement as these are separately contracted with relevant providers. Related considerations can be dealt with through existing procurement processes. The current tender agreement for home support services is due for renewal in August 2025, and organisations will be given an opportunity to input into a rate review.

The proposed framework text builds on the 17th October 2023 Interim Agreement between the parties in the context of the Public Service Agreement 2024-2026.

The terms and conditions of employment for staff in these organisations are ultimately determined between the employer and their employees. The Agreement applies to organisations grant funded under relevant statutory arrangements and providing services commissioned through Service Arrangements, Service Level Agreements or Grant Agreements with the commissioning agency or parent department(s).

Funding increases to cover the cost of pay increases to staff within individual service providers will be assessed and validated by reference to the statutory funding arrangements in place with the relevant Agencies on the date of an agreement.

What this means for workers in these sectors

Organisations funded by the HSE provide a range of disability services. Assuming an average salary for a Personal Care Assistant at €34,000 in one of these providers, application of the 9.25% over the phasing proposed would result in a salary of c. €35,800 by the end of 2025 and €37,260 by year end 2026; a speech and language therapist on a current salary of €56,000 would result in a salary of c.€59,000 end of 2025 and c. €61,370 end 2026.​

Organisations funded by Tusla under section 56 of the Child and Family Agency Act, 2013 deliver a broad range of vital services locally all over Ireland including social care services, psychotherapy, family support through the Family Resource Centres, counselling. Tusla utilises the resources available in the most equitable, proportionate, and sustainable way to improve the outcomes for children and families.

Under the terms of the agreement offered to unions, a Social Care Worker funded in this way with a starting salary of approx. €36,500 would see their salary increase to over €38,000 over the course of this year and increase again to over €39,000 by the end of 2026.

CUAN funds Domestic Violence Workers, Rape Crisis Workers, Administrative Support Staff, Advocacy Workers.