Public sector wages 47% higher - CSO

The average employee in Ireland earned €20.08 per hour, worked 34.4 hours a week and had spent nine years in their current job in 2007, according to the latest National Employment Survey.

The survey, conducted by the Central Statistics Office (CSO) in October 2007, found men earned an average of €21.17 per hour, while women earned an average of €18.91 per hour, or 89 per cent of male earnings.

Average hourly earnings in the public sector were 47.6 per cent higher than those in the private sector. Employees in the public sector were paid an average of €26.67, compared to €18.07 in the private sector.

Responding to the CSO’s survey, Fine Gael deputy leader and finance spokesman Richard Bruton called for an audit of work practices in the public sector and a “downward benchmarking” exercise to narrow the gap between public and private sector earnings.

Although comparing average pay levels between the public and private sector could sometimes be “misleading”, Mr Bruton said, there was still “indisputable evidence of a major pay premium in the public sector”.

The survey, which is based on earnings data provided by employers and individual data collected from employees, found that average earnings per hour were highest in the education sector at €33.23.

On an annual basis, however, earnings were highest in the electricity, gas and water supply sector. Average hourly earnings were the lowest in the hotel and restaurants sector at €12.93 per hour. This sector also recorded the lowest annual earnings.

Employees with a third-level degree or higher tended to have higher earnings than other employees and this difference was found to increase with age.

Employees aged under 25-years with a third-level degree or higher qualification earned €17.57 per hour, compared to those with the Leaving Certificate, who earned €12.31 per hour. This gap widened to €42.21 and €20.97 for employees aged between 50 and 60.

More than half of public sector workers have third-level qualifications, compared with 32 per cent of private sector workers. The survey also shows that location influences earning power, with a premium on wages in the capital.

Employees living in Dublin earned €22.03 per hour compared to €20.29 for those living in the rest of Leinster. In Munster, the average hourly earnings were €19.07, while in Connaught, the average was €18.83. In Ulster, average earnings were €17.59 per hour.

Average annual earnings were €37,726 in 2007. This figure was composed of €35,607 in basic earnings and €2,120 in the form of a bonus or benefit-in-kind.