UCD university is seeking to slash its wage bill as it faces the prospect of a €35m current budget deficit.

Staff at the university yesterday heard that the proposed savings include a possible pay cut, reduced hours, a recruitment freeze and the non-payment of bonuses.

While no enforced job losses are envisaged, the institution may seek early retirements and leaves of absence.

UCD is desperate to avoid piling another €20m onto its current budget deficit of €15m.

The news at UCD comes days after it emerged that 300 university professors, including academics at UCD, will each be paid a €10,000 rise.

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The delayed increases were recommended two years ago.

Dr Hugh Brady, the president of UCD, made clear the extent of the university's financial difficulties to 1,000 staff members at a meeting yesterday.

The university's wage bill accounts for 74pc of its costs, and implementing this year's national pay awards alone would add €15m to those costs.

Mr Brady said the college will aim to increase graduate numbers as well as to recruit more overseas students to try to earn more cash.

Measures introduced last year to reduce the deficit included tighter controls on recruitment and deferment of projects.

Dr Brady, in an email to staff before the meeting, said he was seeking ways in which the college could "work together to alleviate the unsustainable situation we find ourselves in".

His message went to all academic and non-academic staff.

Staff at UCC in Cork have already heard of that university's plans to reduce costs.

The academics and other workers at the college have had their pay frozen for a year and contracts have not been renewed for many non-permanent employees.

Difficulties

UCC president, Dr Michael Murphy, said the university would try to work through the difficulties without any job cuts.

At UCD, Dr Brady said the deficit of €15m could increase by up to €20m this year because of a further reduction in government funding and the under-funding of academic disciplines, such as veterinary medicine and Irish folklore

Other reasons included under-funded research overhead costs.

Dr Brady told the meeting that, despite its difficulties, UCD will not be distracted from its goal of being internationally recognised as a university of excellence.

comurphy@herald.ie

- Cormac Murphy