Keeping your best staff should be one of your main priorities - and paying them what they’re worth is the best way of doing so.
Throughout Ireland, each sector has its own average annual earnings and salary so it’s worth taking the time to find out how much your staff should be paid.
Failure to pay your staff their deserved amount could lead to you not being able to keep employees and incur extra hiring costs.
In this guide, we'll discuss what the average salary for workers in Ireland is, if salaries are increasing, and which sectors have the highest wages.
What is the average salary in Ireland?
The average annual earnings for full-time employees in Ireland is now €45,760 as per figures released by the Central Statistics Office. With annual salaries ranging from €9000 up to €172,000 for some of the highest earners.
It’s important to focus on the sector your business operates in. Certain sectors may have more part-time workers for example and the average earnings will likely be lower as a result..
Is there a difference in annual salary between men and women?
In Ireland, everyone must receive equal pay for like work. According to the most recent figures however, the gender pay gap is estimated at around 14%. This does not mean that women are receiving less pay for like work, it suggests that women are taking up a higher proportion of lower paid jobs.
In the aviation sector for instance, there tends to be more men working in higher-paid pilot positions and more women working in lower-paid cabin crew roles. This creates a gender pay gap.
Almost 70% of part-time workers in Ireland are also women which creates a situation where on average men are earning more than women.
To help lower this gap, the Gender Pay Gap Information Act 2021 was passed which will ultimately require all organisations with more than 50 employees to publish certain payroll information and explain any gender pay gap which exists.
What are the average weekly earnings for people in Ireland?
The average weekly earnings for full-time employees across Ireland is €880 a week during the first quarter of 2022, as per the figures released by the Central Statistics Office.
The average weekly wage has increased 2.3% on 2021’s figures.
What are the average hourly earnings for employees in Ireland?
The average hourly earnings for full-time employees in Ireland is €27.33, which is considerably higher than the national minimum wage in Ireland which is €10.50 per hour.
If you're looking to hire part-time employees and you intend to pay them a fixed weekly or monthly amount, you must ensure they're paid correctly and in no circumstances less than the minimum hourly rate of €10.50 per hour.
What are the average earnings for part-time employees?
For the average worker who works part-time hours in Ireland, their annual wage is around €18,000. With an average hourly wage of €11 per hour.
As an employer, you need to pay your staff correctly - so you need to keep track of any increases in the average annual earnings for an average worker in your industry.
What sectors have the highest average annual earnings?
There is a wide range of industry sectors throughout Ireland and the range of salaries varies considerably from sector to sector.
However, the following sectors are the highest paid in the country:
- IT sector (the IT sector has the highest amount of irregular earnings, such as bonuses and overtime).
- Technology sector.
- Manufacturing sector.
- Finance sector.
As an employer, it's important to focus on the earning power of employees in your sector.
While salaries in some sectors may be increasing, it’s possible salaries in the sector your business operates in are simultaneously decreasing and you can respond to staff queries accordingly.
What sectors are seeing the highest wage increases?
Companies within sectors that are thriving usually have higher and more frequent increases in salaries.
The following industries saw rises in wages during 2021:
- Banking 5%.
- IT 6%.
- Travel 7%.
- Construction 3%.
- Education 8%.
To avoid losing staff, you must match any wage increases in the industry your company is in. This'll allow you to keep your best staff at your business by ensuring they are paid correctly for the work they do. Likewise, staying in line or ahead of your industry’s salary expectations will help you attract the best candidates when a vacancy arises.
Are the salaries higher in the private sector or public sector?
Typically, public sector workers earn a higher average annual salary year on year than their private sector counterparts.
The public sector tends to be more unionised and subject to pay agreements reached through collective bargaining.
As a private sector employer, you must be familiar with the highest expected average annual earnings in your industry. It is also useful to know what salary levels are like throughout Ireland as salaries may differ depending on what region your business trades in.
What factors make up a salary?
The salary an employee receives for a particular job is made up of a range of factors. Make sure you do your research when creating a position to make sure you're offering the correct wage and benefits package for the job.
The following factors go into creating a salary:
- Industry: If the role is in a high-paid industry, then the average salary will need to be competitive for that industry.
- Experience: Typically, the more experience someone is bringing to your team, the more they'll expect to be paid.
- Job role and responsibilities: For example, a management role requires a higher salary.
Education also influences how much people earn in Ireland.
Does education influence salaries?
Education level influences salaries across all industries and sectors.
It's a well-known fact that employees earn more money if they hold a college degree, but when you break it down through different educational levels - the impact it has on average salaries is clear.
In Ireland, research has shown that an employee who holds a certificate or diploma earns an average of 17% more annual earnings than other staff who left education after school.
An employee who holds a Bachelor's degree typically earns 24% more than those with a diploma. This increases again to 29% for an employee who holds a Master's degree.
An employee who holds a PhD should expect a salary 23% higher than a peer who holds a Master's degree doing the same job or has the same skills.
Should more experienced staff receive a higher wage?
Staff with more experience typically get paid more than those with less experience. This is purely down to the fact they've built up a lot of skills that would be hard to replace.
But within companies, staff tend to receive salary increases as they progress and improve their development over time. The following is how average earnings typically increase with each experience level and job title:
- Junior level: 3% - 5%.
- Mid-career: 6% - 9%.
- Senior level: 10% - 15%.
- Top management: 15% - 20%.
As an employer, you must understand how to match your worker's salary to their length of employment and accumulation of experience. Getting salaries right will improve employee happiness, morale, and productivity. You’re also less likely to lose employees to your competitors if you pay them what they’re worth.
How does an employee's salary change over time?
An employee's salary can change over time for several reasons, some of which are out of your control. Such as:
- Change in the job role.
- An increase in overtime.
- Industry trends (future data will help with this).
Is annual salary increasing?
For workers in Ireland, average salary and average annual earnings seem to be increasing. In the first quarter of 2022, wages have increased by more than €1000 than in the same period in the previous year.
Similarly, the average person in Ireland has seen their average weekly wage increase by 2.3% at the start of 2022.
For employers, you must keep up to date with any increases in average weekly wage or annual wage so you can review your salary structure, ensuring you keep your best staff in your business.
As an employer, you must know how to calculate any appropriate salary increases.
How do you calculate the annual salary increase?
To calculate an annual salary increase, you need to consider the seniority of the role, the performance of the employee, industry benchmarks and the amount your business can afford.
If you can’t keep a high performing employee by offering them more money, consider other employment policies that might encourage them to reconsider.
If the employee has young children for instance, flexible working could be a great way to keep that member of staff working for your business.
Do you pay more income tax if you earn a higher average wage?
The higher someone's average weekly earnings or annual earnings are - the more tax they'll be required to pay.
Get expert advice on salary with Peninsula
As an employer, you must pay your staff what they’re worth if you want to keep them. , To do so, you must understand the correct average weekly earnings or average annual earnings for the sector your business is based in.
Failure to pay your staff what they deserve can lead to a point where you lose your best workers, as well as not being able to attract the best candidates when a vacancy arises.
Peninsula offers expert advice on how much your staff should be paid. Our HR services can also help you understand the many employment rights your workers enjoy and help you manage a happy workforce.
We also offer 24/7 HR advice that’s available 365 days a year. Want to find out more? Book a free consultation with one of our HR consultants. Contact 0844 891 0353.
