Surely the correct figure to take from this is the 37.6k ie the earnings figure? The 47.6k figure includes "other labour costs" and so is the wrong figure to take for this purpose.
Employer contributions to pensions are a wage cost. If the pension is a DC type the cost is added in the figures quoted. Given that DB pensions are far more expensive the real cost of funding them should also be added when total wage costs are calculated. The most extreme example is people like Gardai where if the cost of their pension is added to their wages the value of their overall package is up to 180% of their calculated income.Purple, just to clarify your question...
Are you asking if future pension entitlements are taken account of in determing todays avg salaries?
Employer contributions to pensions are a wage cost. If the pension is a DC type the cost is added in the figures quoted. Given that DB pensions are far more expensive the real cost of funding them should also be added when total wage costs are calculated. The most extreme example is people like Gardai where if the cost of their pension is added to their wages the value of their overall package is up to 180% of their calculated income.
In that context wages in Ireland are actually significantly higher than the figures quoted.
If I was offered a job paying €80,000 plus 10% employer pension contribution then they would be paying me €88,000, €8,000 of which would be paid into my pension. If they paid my health insurance as well and provided me with a car allowance that would also be added onto my pay. My earnings would be salary + pension contribution + car allowance + health insurance cost. The same applies to those with DB pensions and other perks and flat rate, and often pensionable, allowances which they would otherwise have to pay for themselves. They are income.I understand what you mean. However, the cost to the employer of providing a future pension is not relevant in calculating ones earnings of today.
When someone asks what you earn you simply state your annual salary, you don't calculate what your employer contributes for your pension and add that on.
If I was offered a job paying €80,000 plus 10% employer pension contribution then they would be paying me €88,000, €8,000 of which would be paid into my pension. If they paid my health insurance as well and provided me with a car allowance that would also be added onto my pay. My earnings would be salary + pension contribution + car allowance + health insurance cost. The same applies to those with DB pensions and other perks and flat rate, and often pensionable, allowances which they would otherwise have to pay for themselves. They are income.
That's the point I'm making; "other labour costs" do not include the cost of DB pensions so the real average salary, as per the title of this thread, is much higher than €38,000. The real average salary of a nurse is over €70,000 when pension costs are taken into account. The real salary for a Garda is over €100,000. The average salary in the ESB is around €90,000 before the value of their gold plated pension is taken into account so their real salary must be well over €120,000 a year. ALl that needs to be added to the total before real incomes can be calculated. I don't know what that does to the total average but I would guess that it will increase it significantly.The CSO data clearly list 'other labour costs' which include things like training, company cars and employer pension contributions.
I think they have a technique for calculating the implicit value of a DB pension.
"Almost certainly not" is an understatement.Whether these contributions actuarially pay for the DB pensions in full is another matter (almost certainly not) but it's not fair to say that nothing is counted.
Official data released today in an article in the independent says that Irish average salary is now 38,600 euros. However this cannot be correct as it is also the case that only 22 percent of taxpayers pay tax at the higher rate of circa 36,000 euros. The 22 percent must correct as it is hard data from revenue of actual tax paid. It cannot be the case that 38,600 is the average salary in Ireland when almost 80 percent of taxpayers earn less than this. Either the official statisticians cannot do basic maths or they are excluding many people from their data set in order to make the average salary appear much larger than the reality.
Irish workers earn an average of €23 an hour and a yearly salary of €39,000, according to CSO figures
The sector with the lowest recorded hourly earnings was Accommodation and Food at €12.54 per hour.www.thejournal.ie
an article in the journal about cso statistic showing average irish salary of 39,000 per year met with almost universal ridicule in the comments section. Most people do not see it as correct from their own experience, many are asking why are the CSO not publishing the median salary . I think its another case of leprauchan economics
an article in the journal about cso statistic showing average irish salary of 39,000 per year met with almost universal ridicule in the comments section. Most people do not see it as correct from their own experience, many are asking why are the CSO not publishing the median salary . I think its another case of leprauchan economics
Protocol, I had a less than comprehensive read through of the data you posted and I have one question; Is the value of DB pensions added to the earnings, as they are for DC schemes? If not then real earnings for many in areas such as the Public Sector, Semi-State's and Banks are underestimated so the real figures will be considerably higher.
The CSO does not report "average salaries" - it reports average earnings.
It reports gross earnings, and labour costs.
Labour costs = gross earnings + er PRSI + other labour costs
It does not report "salaries".
It reports gross earnings, and labour costs.
Labour costs = gross earnings + er PRSI + other labour costs
It does not report "salaries".
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