Health Minister James Reilly has exempted existing consultants in the hospital system who change posts to another hospital from a 30% pay cut imposed in 2012.

The Department of Health has also said it will consider measures shortly aimed at supporting recruitment and retention of consultants in the health system.

The policy reversal on pay means that any consultant who changes from one hospital post to another will no longer face a major drop in salary for doing so. However, any trainee doctor taking up a consultant post for the first time will continue to be subject to the lower pay rate.

The 30% pay cut was imposed on new entrant consultants in September 2012, in tandem with an agreement on more flexible working arrangements for consultants.

The current basic pay rate in the public system for new entrant consultants ranges from €95,000 to €120,000, compared to the €150,000 to well over €200,000 many existing consultants can earn.

While the pay cut was intended to affect newly qualified younger consultants taking up a post for the first time, it has also been imposed on existing experienced consultants who may want to move from one hospital to another or to a different post within their existing hospital.

It has reportedly discouraged some experienced consultants from taking up academic teaching posts with greater responsibilities, as they would suffer a significant salary drop by taking on these new roles.

Department of Health Secretary General Ambrose McLoughlin, in a letter to HSE Director General Tony O'Brien, said the Minister had already acknowledged recently that the application of the 30% reduced salary scale to experienced, highly-qualified consultants did not make sense and had to be modified.

Mr McLoughlin said following consultation with the Department of Public Expenditure and Reform, the current guidance on application of the 30% reduced salary scale is to be immediately modified to allow serving established consultants who are appointed to a different post within the public health service to retain their existing salaries.

The consultant representative bodies, the IHCA and IMO, have vigorously opposed the 30% pay cut for new entrants, claiming that it is leading to a 'brain drain' of young specialists out of the Irish system and was preventing experienced consultants from changing posts. The reduced pay rates have made it it difficult for the HSE to fill vacant consultant posts.

The letter also states that a major report on medical career structures will be presented to the Minister by the end of March, which will take account of 'concerns that have been expressed about recruitment and retention'.

Mr Mc Loughlin said he would envisage consideration of the measures necessary to support recruitment and retention of consultants taking place immediately after the Minister receives this report.

He said the Department would consider points raised by the HSE, including recognition of prior training and experience in the remuneration of consultants.

Mr McLoughlin, in the letter, said he acknowledged 'the importance of attracting and retaining high quality consultants as key service providers and leaders in the organisaiton of healthcare.'

"I agree that in order to progress health service reform it is imperative we can retain our current cohort and enable them move within Ireland."

Mr McLoughlin said it was also necessary to put in place a framework that will enable the Irish system attract back Irish doctors who have gone abroad to train, as well as consultants in the private sector whose skills could benefit the public health system.