Employees in almost three quarters of companies across the country are set to benefit from pay increases in 2016, an Ibec survey found.
However, the employers’ body’s poll found a pay hike is dependent on the sector in which you work.
Overall, 71% of companies surveyed said they expected to increase basic pay next year with the median rise predicted in the region of 2% — similar to the figure for both this year and 2014. By the end of 2015, it is expected that 67% of companies will have increased basic wages, significantly more than the 57% predicted at the start of this year.
Ibec said the pay rises, coupled with the tax cuts in the budget, would see an average worker’s take-home income rise by over 3% from January 2016 and result in a net take home pay increase of about two weeks’ pay over the course of next year.
“The average worker will be better off by almost three weeks’ pay by Christmas 2016 compared to Christmas 2014,” said an Ibec spokesperson. “This at a time of historically low inflation.”
Ibec said increases in basic pay were most likely in companies in the hi-tech sector and in larger companies — 87% of hi-tech manufacturing firms plan to increase basic pay in 2016.
However, it said just 58% of SMEs with fewer than 50 employees indicated that they expected to increase basic wages.
Maeve McElwee, the employers’ body’s head of industrial relations, said: “Most workers will feel the recovery in their pay packets next year, but we must not lose the hard fought competitive gains of recent years.
“The focus must remain on job creation. Over the next year we have a chance to further cut unemployment and attract back emigrants, but we must not repeat past mistakes. If costs spiral and we lose our competitive edge, we will pay for it in jobs.
“Only 62% of services companies will be in a position to give pay increases next year, compared to 87% of high-tech manufacturers. Domestic demand is still 10.5% below its pre-crisis peak and many firms in the domestic economy are still struggling.”
© Irish Examiner Ltd. All rights reserved