The latest Earnings and Labour Costs report from the Central Statistics Offices, published 31 May, 2022, shows that average weekly earnings now stood at €880.37 in the first quarter of the year. This is an annual increase of 2.3%. Hourly earnings increased on an annual basis by 1.9% to €27.33.
However, according to Shannon Chamber HR, any wage increase is being eaten away by rising inflation. In another recent report, the ESRI stated the effect on workers’ pockets as a result of soaring cost of living equated to an average decline of €1,300.
The pressure on employers to increase salaries in 2022 is clearly evident in our HR Barometer Report 6.1. The report, published last month, found that ‘Higher salary with new employer’ was the main reason employees left for a new job. And with ‘retention’ highlighted as the top HR priority for 2022, it is not surprising that over half (54%) of organisations have already or will be increasing salaries this year.
In terms of the private sector, our HR Barometer Report 6.1 found that 77% of organisations in the Construction & Manufacturing have or will increase salaries in 2022, followed by Finance and Professional Services at 61%.
The Government is also under increasing pressure from various trade unions to reassess the current pay deal. And while this was publicly acknowledged recently by the Minister for Public Expenditure, Michael McGrath, he also said that it needs to be done in a balanced way.
Under the current pay deal, public sector workers received a 1% increase in salary last year with a further 1% increase this coming October.