Recovery of Overpayments

Circular 07 of 2018 – Recovery of Salary, Allowances and Expenses Overpayments made to Staff/Former Staff Members/Pensioners came into effect on April 16th 2018 and replaced Circular 10/2017 – Recovery of Salary, Allowances, and Expenses Overpayments Made to Staff/Former Staff Members/Pensioners.

What distinguishes Circular 07/2018 from Circular 10/2017 is the inclusion of an amended section 8 which reinstates the provisions for processing current-year and out-of-year recoupments that were originally set out in Circular 01/2015. The implication for individuals is that if an overpayment is being recouped in a year other than the year that it arose in, the gross amount of the overpayment has to be recouped from the individual’s net salary and any tax overpaid is then recouped by the individual from Revenue.

The key principles of the Recovery of Overpayments Circular are that:

  • An overpayment of salary/allowances/expenses represents monies owed to the Exchequer and is recoverable in principle;
  • Departments and Offices have an obligation to seek to recover the amount of the overpayment and correct the mistake in the disbursement of public funds subject to relevant procedures and practices in Government accounting;
  • The civil servant/former civil servant/pensioner has a reciprocal obligation to repay the amount owed to the Exchequer.

The Circular provides for a variety of ways in which an overpayment of salary, allowances, and expenses may be recovered, including repayment plans, delayed pay adjustments, etc.

The Circular also provides for exceptional/hardship arrangements where appropriate for the particular circumstances of a staff member/former staff member/pensioner. The staff member/former staff member/pensioner will be asked to complete a form to support their application for exceptional and hardship arrangements which can be found here.