The Minister for Health has confirmed that a number of health managers who were paid controversial top-ups above the Government cap, are to be allowed to keep them.

The Attorney General has told the Government that voluntary hospitals and health agencies did not act outside the law when they made the payments to senior managers.

The story first came to light in 2013. The most controversial case was at the Central Remedial Clinic where public donations were being used to top up salaries.

Heath Minister Leo Varadkar said only health managers working in voluntary hospitals and charities can retain their top-ups.

"Where a top-up pre-dated 2010, and had a contractual commitment, they can be retained for that person," he confirmed.

"But any future appointments will have to be entirely compliant with public sector pay policy, and if a body does not comply they'll have any additional funds deducted from their income from the State."