Thursday 18 July 2019

Average worker just €8 a week better off

(Stock photo)
(Stock photo)

Anne-Marie Walsh

The average worker's pay will rise by just €8 a week this year in real terms if price hikes are taken into account, according to a new survey.

Wages will increase by €19 a week for the average worker earning €740 a week, or roughly €38,600 a year, during 2019, according to American consultancy firm Korn Ferry.

But it forecast that inflation will knock €10.86 off the increase. This means the average worker would be just €8 better off.

According to the survey, wages will increase by 2.5pc, but when the 1.4pc hike in the cost of living is factored in, the real-terms increase is 1.1pc.

The predicted rise represents a significant slowdown on last year's wage growth.

But it would still be higher than pay hikes in the UK, France, Italy and Germany.

Global general manager for pay Ben Frost said despite continued economic uncertainty, the outlook for Ireland remained positive. "Salaries continued to grow through 2018 and are expected to rise at a faster rate than many other developed economies," he said.

Rob Wilder, country chairman at Korn Ferry Ireland, said the salary forecast was "indicative of Ireland's buoyant economy".

Irish Independent

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