Irish wage rates slip down ranking

Despite growing concerns among employers about pay rises undermining Ireland's competitiveness, the latest "Pay in Europe" report shows Irish wage rates are now the 13th highest in a league of 41 European economies, compared with 8th highest a year ago. It also says longer leading indicators based on surveys of business confidence, house building intentions and manufacturing projections suggest Irish growth rates will be 1.9 per cent lower in 2001.

The survey also shows Ireland has the 12th highest "tax and social security take" in Europe with 22 per cent of wages being deducted. Top of the league is Denmark, which also pays the highest wages. Forty-four per cent of Danish workers' wages are deducted in tax and social security contributions. Poland has the lowest rate of deductions at 16 per cent.

The report is published by the Federation of European Employers (FedEE) and is one of the most comprehensive and up-to-date wages surveys so far this year. The figures are based on February 1st wage rates and cover 30 benchmark occupations.

The European Pay League for early 2001 (based on median hourly earnings) shows Denmark still pays the highest wages. But Luxemburgers have edged up from sixth best paid in 2000 to second best paid in 2001. Switzerland slipped back from second to third place and Norway slipped from third to fourth place.

Germans are now the fifth highest paid workers, compared with fourth place in 2000. British workers fell from fifth highest paid to sixth, just ahead of the Isle of Man, which entered the survey for the first time.

The Netherlands replaced Ireland at eighth in the league, followed by Belgium at ninth, Sweden at 10th, France at 11th, Finland 12th and Ireland 13th. Wage rates in all these states are close together, suggesting, says FedEE's Mr Robin Chater, that EU harmonisation policies are beginning to work.

He added that Ireland must learn to adjust to a situation where "the centre of power, influence and money move east".

Wage rates fall dramatically as the survey moves east. Russia comes 39th in the league and the lowest paid workers in Europe (the survey also covers Cyprus, Turkey and Israel) are the Moldovans on 20p an hour.