Private sector workers to get 2% salary hikes

Almost all private sector staff no matter where they work can expect salary hikes of just over 2% next year, according to a major report published this morning.

The findings from consultants Mercer shows after the long years of contraction and recession that pay rises are back on the agenda. Mercer Ireland said it surveyed 135 firms and almost all, 97%, have budgeted to pay out salary increases next year.

Staff can expect average pay to rise 2.2% in most pay grades, and pay in the construction industry is increasing too.

The average salary hikes mask a range of pay rises which could open up pay differentials for employees, depending where they work. The big winners are likely to be staff working in life sciences, hi-tech and some non-banking service firms, which expect to pay 2.4% to 2.8% more. Retail and warehousing firms have ‘budgeted’ for salary increases of 2.4%, possibly reflecting longer working hours and a pick-up in retail sales.

With pay rises of 2%, people working in energy, consumer goods, and manufacturing may fare relatively worse. Banking and financial services firms have budgeted for a 1.9% rise. Noel O’Connor of Mercer said opportunities were at last opening up.

CSO figures for average earnings and labour costs published late last month suggest pay may already be rising but probably from a low base.

Average weekly earnings at many employers in the third quarter rose 2.7% from a year earlier, the CSO said.