Public sector wages fall by average of €47.88 a week over past four years, report finds

Public service staff experienced deeper wage cuts than those in private sector, Institute of Public Administration report says

Richard Boyle of the Institute of Public Administration, whose report on public-sector trends in 2013 says average weekly earnings are considerably higher in the public sector than for private-sector employees. Photograph: Eric Luke
Richard Boyle of the Institute of Public Administration, whose report on public-sector trends in 2013 says average weekly earnings are considerably higher in the public sector than for private-sector employees. Photograph: Eric Luke


Over the past four years average weekly earnings for staff in the public sector have fallen by €47.88, or 5 per cent, compared with an average reduction of €2.41, or 0.4 per cent, for private-sector workers, according to a new study published by the Institute of Public Administration.

However, the report on public-sector trends in 2013 by Dr Richard Boyle says average weekly earnings are considerably higher in the public sector than for private-sector employees.

The report maintains average weekly earnings in the public sector in 2013 were €916 compared to €607 in the private sector.

It says these figures represent gross earnings before deductions for PRSI, tax and other levies. It says the Central Statistics Office notes this is particularly relevant to the public sector since March 2009, when the pension levy was introduced.

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The report says the reasons for the wage gap are “varied and disputed”.

It found there was a dramatic fall in the level of trust in government in Ireland from 2008 to 2010. Since then, reported levels of trust have fluctuated, but remain low with 18 per cent saying they had trust in government in spring 2013.

'Overall performance'

“In terms of overall performance, the data presented in this paper would tend to suggest

the quality of Ireland's public administration remains close to the average for the European Union. There are some signs that aspects of quality are seen as having improved in the last three years.

“As numbers employed in the public service have been falling in recent years at the same time as the population and demand for services has been increasing, to register some improvements in quality of public services compared to other European countries in these circumstances is no small feat.”

The report says while there are positive signs, “this is not to say there are no problems and challenges facing the public sector”.

"Efficiency and cost-effectiveness can still be improved in many areas. Trust and confidence in public services remains low overall. In very few areas is Ireland at the leading edge of Europe with regard to its public administration."

Martin Wall

Martin Wall

Martin Wall is the Public Policy Correspondent of The Irish Times.