Taoiseach and McDonald clash over top salaries, including €75k hike for Irish Rail chief

By Rebecca Black, Press Association

The Taoiseach and Opposition leader Mary Lou McDonald have clashed over salary increases for the heads of semi-state bodies at the first Leaders’ Questions of 2026.

The Sinn Féin president said the Government “approved big pay hikes” for the chief executives, despite most in the state earning less than most of the increase amounts.

Micheál Martin pointed out that salaries for the chiefs of semi-state bodies are set by an independent body.

Ms McDonald said the head of CIE received an increase of €35,000, while there was a €50,000 hike for the chief of Bus Éireann, and a €75,000 hike for the chief of Iarnród Éireann.

She said it has also been reported that a pay increase has been sought for the RTÉ Director General, to bring their salary close to €300,000.

Ms McDonald said “1.4 million workers in this state earn less than €45,000”, describing their “disbelief” to see those pay hikes.

“Increases far beyond that which is earned by those who keep the country going – young nurses, gardaí, the teachers, those working in retail, in factories, in hospitality, cleaners, carers.

“No big pay hike for them, no. On the contrary, your bumper budget of €9.4 billion abandoned those working people, and in fact, left them worse off.

“The daily struggle of low and middle income workers to keep their heads above water, to look after their children, to pay their bills and put food on the table is very, very real, but your priorities that of Fianna Fáil and Fine Gael in Government are clear.

“You, Fianna Fáil and Fine Gael will always show up for those at the top, and meanwhile, ordinary working people are taken for granted, brushed aside and short-changed over and over again.

“Can you explain to them how you can stand over big pay hikes for semi state CEOs when they don’t get a red cent of a break on their income tax?”

The Taoiseach responded saying he did not agree with Ms McDonald’s assessment of the Government’s priorities.

He said they wanted to focus on a strong economy, particularly employment, and have achieved the largest number of people working, over 2.8 million people.

“That’s a record for the Irish labour market … and if you compare us to other EU member states in respect of the creation of employment and a robust economy, I think you will not find an equal,” he said.

“That is why in the budget, we focused on services, a substantial increase in allocation to education, to disability and to health and those increases will make a difference, and are making a difference.”

He said there has been 3 per cent in real wage growth this year.

“Wages will increase by about 5.5 per cent if you take 2 per cent plus inflation, you’re looking at real income growth.

“If you look at consumption growth and expenditure, you’re looking at over 3 per cent, now that doesn’t reveal the type of scenario that you create.

“We acknowledge there are cost-of-living challenges to people, but we have worked very hard through a long, long list of supports and free schemes, from free books to hot school meals that we’ve introduced to cushion people against the undoubted pressures of cost-of-living increases.”

He added: “In relation to semi state CEOs, you know full well an independent body got together.

“There had been few increases in recent times, it was becoming difficult to recruit people to keep positions within the semi state sector, which is important for the economy also, and that underpins the figures that you outlined.”