Public Pay Is 26% Higher Than Private

The Economic and Social Research Institute claims there is a pay gap between workers in the public and private sector approaching 26%.

The figures coincide with rumblings from the Government that Public Sector pay will be cut in December's Budget.

The Government is keen to cut public sector wages as a number of leading economists have supported the policy in order to drive down private sector wages in the hope of making Ireland a more competitive employer and stimulating foreign investment.

In a previous study, the ESRI found that in 2003, public sector workers earned on average 9.7% more than their private sector counterparts - but that by 2006, that gap had risen to 21.6%.

Now the ESRI believes the gap has reached 26% without considering the benefits such as job security.

The so-called 'public sector premium' is lowest in the Civil Service and Local Authorities where workers earn an average 9-12% more than counterparts in the private sector.

The premium is greatest in the education sector where pay in the Institutes of Technology and the Universities give rise to a premium of 52.6%.


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