Owners of small firms on low pay

MORE than half of all owner managers of small firms earn less than £25,000 per year and work an average of 54 hours per week, a new survey claims.

It shows that managing directors of companies with up to 50 employees get fewer than 17 days holidays per year.

The survey, which was carried out by the Irish Small and Medium Enterprises Association (ISME), shows that just 11 per cent of owner managers earn more than £45,000 per year. 10 per cent earn under £45,000 and 28.5 per cent earn under £35.000 per year.

ISME national director, Mr Frank Mulcahy, said last night that over half of owner managers draw an average salary which is less than that of an assistant principal officer in the Civil Service. Mr Mulcahy said the average wage in the public sector was £26,000 per annum.

"Yet as employers, managers and risk takers, they will be required - unlike civil servants - to pay the full level of PRSI on those salaries, and they forfeit PAYE tax exemption allowances, and this discrimination extends to their spouses".

Mr Mulcahy said the average working week was 39 hours and if the extra hours worked by ownermanagers are factored in, then 79 per cent of owner managers earn less than the average wage in the public sector.

Mr Mulcahy claimed that the survey - which received over 400 responses - also demonstrated the disincentive of the 38 per cent corporation tax on distribution companies in building their financial base.