Three weeks’ extra pay…

Reported this week by the Irish Independent, increases in basic pay are most likely in companies in the high-tech sector and in larger pricate companies, as 87pc of high-tech manufacturing firms asked by Ibec said they have plasn for wage increases.

Head of Ibec’s industrial relations and HR, Maeve McElwee said that most workers would 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,” she said.

“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.”

Ibec said that 71pc of companies surveyed planned to increase basic pay next year, with the average increase of about 2pc. The survey which was conducted last month included about 340 companies.

Ibec said the combination of pay rises and tax cuts would see an average worker’s take-home pay rise by more than 3pc from January, and result in a net take-home pay increase of about two weeks’ pay over next year.

As a result of changes to taxation in Budgets 2015 and 2016, as well as pay increases in private companies, the average worker will be better off by around three weeks pay by Christmas 2016, compared to Christmas 2014.

Unfortunately not every employee will enjoy these pay increase as some companies are still not at the point of awarding pay hikes.

“Overall, we expect to see more increases in the tech and high-tech manufacturing sectors,” Ms McElwee said. “But we do expect in 2016 to see increases in areas where we haven’t seen them so much, with both distribution and services indicating higher rates of intentioned pay increases next year.”

However, she warned that among small companies with fewer than 50 employees, only 58pc indicated they would pay increases next year.

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