The Budget has left the Republic with the lowest percentage tax and social security costs in 20 out of 25 EU states, according to a new survey from Deloitte.

The survey also concludes, however, that overall employment costs in the Republic are among the highest in the union.

Deloitte has found that the average wage cost of a worker in the Republic rose from €33,668 in 2004 to €34,997 this year, an increase of 3.9 per cent.

This leaves the Republic as the ninth most expensive country for employers across 20 EU states. The cheapest, according to Deloitte, is Poland, where average remuneration costs amount to just €5,662. This equates to an annual take-home pay of €3,296, while the average Irish take-home pay is €29,168 since the Budget.

The next cheapest EU state for employers is Estonia, with an average wage cost of €7,466, followed by Slovakia with €8,321. The most expensive wage costs were recorded in Germany, where the average worker costs €50,057 but only takes home €27,679.

The highest take-home pay came in Luxembourg, where wage costs average at €46,395 and average take-home pay is €36,703.

Deloitte pointed out yesterday that last week's Budget had reduced tax on the average employee in the Republic by €320, while not adding to the overall cost of employment. The firm argues that the Republic can justifiably be listed as "a low-tax jurisdiction for employees".

The proportion of social security and tax within average Irish wage costs now stands at 16 per cent, compared to almost 45 per cent in Germany and 42 per cent in Poland.

Pat Cullen, tax partner with Deloitte in Dublin, said the survey's results illustrated the Irish commitment to keeping down tax and social welfare costs.