Base salaries to see average 4.5% increase next year

IRISH workers can expect their base salaries to increase by an average of 4.5% next year.

This figure is at the higher end of expected EU-wide salary increases of between 2.2% and 5%, according to a survey from consultancy firm Mercer.

Actual salary increases in Ireland this year were 4.5%, marginally higher than last year.

The survey found that high demand for certain positions fuelled above average pay increases this year and professionals in finance, tax, compliance and sales saw the highest increases of up to 9%.

Senior consultant with Mercer Mary McDermott said there has been a shift away from share options to restricted stock and performance related share plans, largely driven by increased focus on paying for performance, the need to retain key employees and the change in accounting for share options.

“Companies are recognising they need to vary their compensation structure and benefits package for employees with specialised skills to retain key talent,” she said.

The survey also showed the average number of vacation days typically offered by Irish firms has increased to 23 days across all industry sectors.

Also the number of employees in defined contribution plans are increasing, with companies generally contributing between 5% and 10% of base salary.

The survey also said that companies that traditionally would look to the London market for specific professional roles have now to consider the additional cost of living differential between London and Dublin.