Irish Water says its system for paying bonuses to workers won't allow staff to increase their overall salary - but to potentially LOSE money if they don't perform at the highest level.

A spokeswoman for Irish Water has told Today FM that the scheme won't see workers get EXTRA money, on top of their base salary - but, in fact, could see them effectively lose money if they are not performing at the highest level.

She said staff performing at the highest level will receive a maximum of 100 per cent of their salary - and that they effectively lose money if their standard falls.

Under this explanation, senior managers could lose up to 19 per cent of their salary, with middle-ranking workers risking up to 9 per cent, and lower-level staff 4 per cent.

In an earlier statement Irish Water said the pay of its employees "includes salary and ‘at risk’ performance related awards".

"Total pay is benchmarked to the median of the market, but a [percentage] of salary is ‘at risk’ for each employee and full salary can only be achieved if performance targets are met," it said.

"In effect, this means salaries will reach the median of the market only if performance targets are met in full."

Earlier, a series of government ministers had lashed out at the news - revealed on RTÉ's This Week programme yesterday - that senior staff could receive apparent bonuses worth up to 19 per cent of their salary.

One minister said staff at the utility had not yet earned the right to receive any bonuses, while another said the idea of extra payments "jarred with him".

Our political correspondent Gavan Reilly filed this report for the National Lunchtime News: