Public-private pay differential ranged from 0.9% to – 6.6% in 2022
New figures from the Central Statistics Office show that the public-private pay differential on average ranged from 0.9% to a decrease of 6.6% in 2022.
The CSO said that trends in the public-private pay differential show that public sector employees on higher incomes are worse off in terms of gross pay in comparison with private sector employees – this is known as the public sector discount.
This trend reverses for those on lower incomes in the public sector who are better off in terms of gross pay in comparison with private sector employees – this is known as the public sector premium, the CSO added.
The CSO also said that the size of the business has a significant effect on the pay differential in its models.
When firm size is included, public sector employees are worse off in terms of gross pay with discount ranges of -4.4% to -6.6% during 2022.
But when firm size is excluded, public sector employees are slightly better off in terms of gross pay in comparison with private sector employees, with differential ranges from a premium of 0.9% to a discount of -1.4% in 2022.
Today’s figures also show that the size of the pay differential in the public sector was higher for women than for men.
The CSO said this means that women working in the public sector have a higher pay differential than men in the public sector when compared to their private sector counterparts.
Article Source: Public-private pay differential ranged from 0.9% to – 6.6% in 2022
