A forecast issued today by Korn Ferry reveals that Irish salaries will grow by an average of 2.5% in 2019. For the average worker, who earns €740.32 a week before tax, that means an increase of €18.51 a week.
However, when adjusted for inflation – which is forecast to grow by 1.4% in 2019 – real-wage salaries are expected to grow only an average of 1.1% this year.
While the figures reflect a drop of 0.6% on 2018, they remain above the global average of 1.0%, significantly outperforming other Western European Countries, including Italy (0.8%), UK (0.6%) and France (0.5%), as well as the United States (0.6%).
The data was drawn from Korn Ferry’s pay database which contains data for more than 20 million job holders in 25,000 organizations across more than 110 countries.
Commenting on the figures, Korn Ferry’s Global General Manager for Pay, Ben Frost said, "Despite continued economic uncertainty, the outlook for Ireland remains positive. Salaries continued to grow through 2018 and are expected to rise at a faster rate than many other developed economies. Salaries are an important part of a company’s rewards strategy. And while inflation indices are a solid benchmark for reviewing market trends in pay, we recommend that employers take a broader perspective by defining and agreeing upon their own measures of cost drivers, business strategy and local trading conditions. Compensation programmes need to be regularly reviewed to make sure they align with changing business and market conditions."