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Public sector average wages are €300 per week higher than private sector

The average public sector wage is just short of €920 per week – but experts say that could be skewed.

THE AVERAGE WEEKLY wage in the public sector is €918.86, almost €300 higher than the average private sector worker.

Latest statistics from the CSO show that the gap between earnings in the two segments is growing, with public sector workers adding an average of €15.88, or 1.8%, in weekly wages compared to the end of the first quarter this year.

This is in opposition to the picture in the private sector, where workers have on average €8.53 less in their pockets than at the end of the first quarter, a reduction of 1.4%.

Full picture

Despite the contrast, economists warned that the average pay levels do not give a full picture of the reality of the wage situation in Ireland.

Davy economist David McNamara said that the increase in public sector wages is “not surprising” given the volatility shown in the index, which often jumps up and down compared to previous quarters, and could be revised at a later date.

Private sector pay levels often lag behind the rate of economic expansion in the midst of a recovery after a deep recession, McNamara warned.

PrivatePublic Wages in the private and public sectors. Davy Research Davy Research

“It’s not surprising to see weak wage growth in the early stages of a recovery. The same is true in the UK where wages have been declining in real terms since 2008, even as unemployment falls rapidly.”

With our unemployment rate still very high, it’s not surprising to see wage growth remaining weak.

Disparity

Ibec chief economist Fergal O’Brien warned that the average pay level in the public sector could be skewed by the presence of well-paid officials at the top, while recruitment may have languished at the bottom rungs of the pay ladder.

Similarly in the private sector, higher average wages could be sustained by ‘last in, first out’ policies, which often preserve the higher wages of more senior staff at the expense of lower-paid new hires, he said.

He warned, however, that the increment system of pre-ordained pay increases in the public sector was cancelling out wage reductions delivered in recent years.

“While we’ve had some cuts, we’ve also had increments, so the impact of pay cuts has been returned in the form of increments.”

He said that the disparity between public and private pay levels could partially be explained by differences in the skills, education and job types demanded by the two segments, but said that high public sector wages still had to be tackled.

Even adjusted for education, skills and experience, we have a significant pay premium in the public sector, and that’s an issue that has to be part of the post-crisis discussion.

On an annual basis, both the private and public sectors are out of pocket, with losses of €9.15 in the public sector this time outstripping the private, where wages have come down by €1.79 compared to this time last year.

Overall, national earnings figures show that across all sectors of the economy, wages have come down while working hours have gone up.

The national weekly wage average is €688.15, down from €695.53 a year ago, and €692.43 at the end of the first quarter.

Working hours have increased marginally, with the average week now consisting of 31.8 hours, compared to 31.3 at the end of Q1 and 31.6 this time last year.

Who’s best paid?

On a weekly basis, members of the Garda Siochana are the best remunerated public-sector workers in the state on average.

PubSectorEarnings CSO CSO

Wages for the Gardai climbed by just under €9 per week to €1,236 during the second three months of the year, although they are marginally lower (0.1%) than last year.

The lowest paid branch of the public sector was the other arm of the security services, with members of the defence forces pulling down €812.16 per week, down €25.57 on the same period last year.

In the private sector, big gains for workers in the information and communication sector, which includes tech. Weekly earnings in these jobs are around €1,024, knocking those in financial, insurance and real estate industries off the top earnings spot.

The lowest paid workers in the private sector were those in the arts, entertainment and recreation trades, where wages were just €474.13 per week in the second quarter.

The recovery in the building trade was evident in earnings figures, where the average weekly wage is construction was €739.96 up €41.17 in the quarter and climbing 6% in the year.

Read: ‘We should not fear increases in the minimum wage.’ – Joan Burton links recovery with wages>

Read: ‘Now is not the time for wage rises’ – ISME>

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    Mute Daniel Morrissey
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    Apr 17th 2021, 12:20 AM

    Roll on the 26th change…. yawn…

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    Mute Anna Carr
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    Apr 17th 2021, 12:56 AM

    @Daniel Morrissey: lol. I know how you feel. How many bloomin people over 65 are in the country. They seem to go on forever hahaha

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    Mute Peter McGlynn
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    Apr 17th 2021, 1:12 AM

    @Anna Carr: I don’t know how many. How many people voted Fianna Fáil? In or around that amount.

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    Mute Ger
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    Apr 17th 2021, 3:06 AM

    @Anna Carr: it literally tells you in the article

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    Mute Paul Gorry
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    Apr 17th 2021, 3:16 AM

    @Ger: ah lighten up ger her comment was tongue in cheek jayus what are you not seeing there?

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    Mute Dave O'Keeffe
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    Apr 17th 2021, 5:13 AM

    @Daniel Morrissey: well yeah, can’t make them deliver it faster or make it ourselves so that’s what we have to do.

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    Mute Anto Curran
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    Apr 17th 2021, 8:00 AM

    @Peter McGlynn: obsessed with FF. Unless you’re playing an online game where you can try to fit FF into every comments section?

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    Mute Barbara Stewart
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    Apr 17th 2021, 11:55 AM

    @Anna Carr: Sorry for being 69 and delaying your vaccination….I could have said the same about all over 70s but I have a bit more respect!!!

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    Mute Tony Humphreys
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    Apr 17th 2021, 1:54 AM

    You lost me at the word ‘plan’. I always thought they there was only one plan – lockdown. Why do something when you can get away with nothing.

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    Mute Dave O'Keeffe
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    Apr 17th 2021, 5:14 AM

    @Tony Humphreys: well you thought wrong and then refused to think about it anymore

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    Mute Keith Richardson
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    Apr 17th 2021, 1:54 PM

    @Dave O’Keeffe: well there is no published plan on reopening. I’m sure there’s one on a desk somewhere. If people were treated like adults and told this then there would be increased confidence.

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    Mute Dave O'Keeffe
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    Apr 18th 2021, 5:32 AM

    @Keith Richardson: no, if there was a widely publicised plan with an unpredictable pandemic and unreliable delivery schedules any changes would undermine the confidence you claim it would bring.

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    Mute Tarraing Mo Liathróidí
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    Apr 17th 2021, 8:02 AM

    The fact we still likely won’t restart tourism and hospitality till June or July is just mind boggling, especially given the fact MM despite some who said it was lies when I pointed out that leaky Leo said the same thing, that he can’t say we won’t go into another lockdown after this one. And given the fact the hse management seem to have done nothing except allow the waiting list balloon and get themselves a pay rise, any extra surge from even a few covid cases over the winter months makes this likely since they now have a great excuse to cover up they barely cope any winter before covid hit. So this means a lot of small businesses and retail included as well may only have a small window to open and make some much needed money, meanwhile north will be full steam ahead open end of May.

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    Mute Siobhan Rosemary
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    Apr 17th 2021, 8:35 AM

    So the AstraZeneca isnt safe to use on under 60s but is safe for under 60s who received 1st dose?? Think il pass on the second thanks. Back of the que I go lol

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    Mute Dave O'Keeffe
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    Apr 18th 2021, 5:34 AM

    @Siobhan Rosemary: that silly. 1 in a million died of a blood clot that nobody knew to be looking for. That’s different now. 12 in a million died of covid here and doctors were definitely looking for it.

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    Mute K Flan
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    Apr 17th 2021, 11:26 AM

    2 more weeks to flatten the curve

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    Mute Dave O'Keeffe
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    Apr 18th 2021, 5:35 AM

    @K Flan: the curve is flattened. Sadly the base rate is still over 300 cases per day.

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    Mute Sean Callan
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    Apr 17th 2021, 7:26 AM

    Boring boring boring all this lot has to offer

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