Survey reveals public-private sector pay gap

The average employee in Ireland earns €19.16 an hour, works just under 35 hours a week and has spent 8

The average employee in Ireland earns €19.16 an hour, works just under 35 hours a week and has spent 8.7 years in his or her current job, according to the latest National Employment Survey.

The survey, conducted by Central Statistics Office in October of 2006, is based earnings data provided by employers and individual data collected from employees.

It found that average hourly earnings in the private sector were two-thirds that of those in the public sector.

Employees in the public sector were paid an average of €25.47 per hour, compared with €17.11 in the private sector.

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The highest average rate was in the education sector at €32.06 per hour, followed by €29.50 in the electricity, gas and water supply sector.

The lowest hourly pay rates were in the hotel and restaurant sector at €12.39.

The survey found that women earned on average €17.67 per hour across all sectors, just under €3 less than men who were paid €20.50.

The gender pay gap was most pronounced in the financial sector where women’s average hourly earnings were €20.22, substantially less than the €28.95 earned by men.

The difference was smallest in the hotel and restaurant sector with men earning on average €13.01 per hour while women earned €11.97.

Men worked on average just over 38 hours per week while women worked 31 hours.

The figures also show that half of all employees earned significantly less that the median hourly rare of €15.51 and that

The survey shows that employees who had a third level degree or higher tended to earn more than those without and the difference increased with age.

Employees under 25 years of age with a third level qualification earned on average €14.99 per hour compared with those with a higher secondary level of education.

However, the gap widens to €42.51 and €21.20 for employees aged 50 to 60 years.

Another factor influencing earning power was geography, with employees in Dublin earning on average €1 to €2 per hour more than those living in the rest of Leinster, Munster and Connacht.

Employees living in Ulster, including those residing in Northern Ireland and working in the Republic, earned on average €16.67 an hour, compared with €18.67 in Connaught, €18.75 in Munster, €18.96 in Leinster (outside Dublin) and €20.46 in Dublin.

The average annual earnings were €37,200 in 2006, composed of €35,153 basic earnings and €2,046 irregular earnings and allowances. Earnings were highest in the electricity, gas and water supply sector at €66,667 and lowest in the hotels and restaurant sector at €22,139.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times