Ireland one of EU states where pay rates fall

IRELAND is one of five EU countries where pay rates fell last year, although the drop in the cost of living meant the cut was less in real terms.

A report from the Dublin-based EU body, Eurofound, says that across the EU the dramatic drop in inflation resulted in significant pay increases for many despite small or no wage rises. The average increase for Irish workers in 2008 was 2.3% but with inflation the real increase was closer to 1.7%. Ireland was just one of seven countries were workers experienced a real increase in income as in most other states the money was eaten up by increased inflation.

But the picture is not so rosy for 2009 when national pay talks broke down and the Government introduced the pension levy for civil servants that cut their take-home pay by 7%.