Irish workers took a 3.9% pay cut last year as wages fail to keep up with inflation 

The difference between wage growth and surging prices meant Irish people effectively worked for nothing for 8.3 days

Oxfam Ireland CEO Jim Clarken warned of 'a clear and alarming trend towards widening pay scales and resulting inequality across the globe'. File picture: Gareth Chaney/Collins 

Irish workers took a 3.9% pay cut last year as wages lagged behind inflation by an average of €2,107.

New analysis carried out by Oxfam has found that the difference between wage growth and surging prices meant Irish people effectively worked 8.3 days for free. The total loss for workers was over €5bn. 

The analysis, published by Oxfam to mark International Workers’ Day, shows Irish workers fare worse than the global average which stands at 3.19%. Oxfam Ireland CEO Jim Clarken said: 

We recognise that figures from any one point in time can be exceptional in some regard — but what we are highlighting is a very clear and alarming trend towards widening pay scales and resulting inequality across the globe. 

“Most people across the world find themselves working longer for less and struggling to keep up with the cost of living.”

The calculations, based on Eurostat, World Bank and OECD data, noted that wages may have risen in Ireland in some sectors. 

However, the average rise has not been as high as the rate of inflation. 

Oxfam said that, globally, shareholder dividends hit a record $1.56tn last year, a 10% real-term growth compared to 2021.

Oxfam has renewed its call for greater taxation including windfall taxes on corporate profits.

US corporations paid out $574bn (€518bn) to their shareholders, over double US workers’ total real wage pay cut. Brazilian shareholders received $34bn, just shy of what the country’s workers lost in real wages.

Mr Clarken said of greater concern was that progress in reducing extreme poverty has stopped with extreme wealth and extreme poverty increasing simultaneously for the first time in 25 years. “Poverty is once again on the increase,” he said.

Oxfam has renewed its call for greater taxation including windfall taxes on corporate profits, Mr Clarken said: 

We are calling for a national conversation in Ireland about taxing extreme wealth more effectively in order to redress the balance between sky-high executive pay and ordinary workers struggling to make ends meet.

“This week we heard that we pay double the European average for electricity in this country.

"Meaningful windfall taxes on excessive corporate profits should be introduced without delay to stop out-of-control inflation and profiteering.”