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Business in Ireland 2020

Business Costs in Ireland

Wages & salaries accounted for 91.6% of personnel costs for the total business economy in 2020

CSO statistical publication, 02 November 2022, 11am

Personnel costs¹ are defined as the total remuneration, in cash or in kind, payable by an employer to an employee.

Personnel costs are made up of:

wages and salaries
employers' social security costs

Social security costs for the employer include employer's contributions to the PRSI scheme, superannuation funds, PRSAs, and other pension schemes. Also included are insurance premiums, employer’s liability insurance, and private health premiums paid on behalf of employees.

¹See Appendix 2 for full definition.

Breakdown of Personnel Costs

Wages & Salaries accounted for 91.6% of personnel costs for the total business economy in 2020
Social security costs accounted for 8.8% of SMEs (<250 persons engaged) total personnel costs compared with 7.8% for large enterprises (250+ persons engaged)

	Social security costs	Wages & salaries
SMEs (<250 persons engaged)	8.8	91.2
Large (250+ persons engaged)	7.8	92.2
Total Business Economy	8.4	91.6

Social Security Costs as a Percentage of Personnel Costs

For the total business economy, social security costs represented 8.4% of all personnel costs
For SMEs in 2020, social security costs as a percentage of personnel costs ranged from 8.1% in the Distribution sector to 10.3% in the Industrial sector in 2020
In large Construction firms social security costs represented 11.2% of their personnel costs, compared with 6.6% for large Industrial firms

	SMEs (<250 persons engaged)	Large (250+ persons engaged)	All enterprises
Industry	10.3	6.6	8.4
Construction	9.2	11.2	9.6
Distribution	8.1	8.9	8.4
Services	8.3	8.1	8.2
Total Business Economy	8.8	7.8	8.4

EU27 Social Security Costs as a Percentage of Personnel Costs

In the EU27 social security costs, on average, accounted for more than one fifth (21.9%) of personnel costs
In 2019 Ireland had the fifth lowest social security costs as a percentage of personnel costs in the EU27 (10.7%)
Sweden reported the highest proportion of personnel costs related to social security (31.7%)

X-axis label	Social security costs as a percentage of personnel costs
Sweden	31.7
Italy	28.3
France	28.2
Czech Republic	26
Slovakia	25.3
Belgium	24.9
Estonia	24.6
Austria	22.9
Portugal	22.7
Spain	22.3
Greece	20
Netherlands	19.7
Latvia	19.1
Germany	18.1
Finland	17.7
Poland	16.9
Hungary	15
Bulgaria	14.8
Cyprus	14.1
Slovenia	13
Croatia	12.6
Luxembourg	12.4
IRELAND	10.7
Denmark	8.2
Malta	6.7
Romania	3.4
Lithuania	1.8

Wages & Salaries in the Total Business Economy

In 2020, the Services sector accounted for almost half (49.0%) of all Wages & Salaries paid in Ireland's business economy
Ireland's Industrial and Distribution sectors accounted for 25.5% and 18.4% respectively
The Construction sector's share of total Wages & Salaries paid in Ireland in 2020 was 7.1%

For long labels below use to display on multiple lines	Wages and salaries
Industry	25.5
Construction	7.1
Distribution	18.4
Services	49

Wages & Salaries per Person Engaged

In the total business economy in 2020, the average wage per person engaged was €34,364, ranging from €29,304 in SMEs to €45,324 per person engaged in large enterprises
Persons engaged in the Industrial sector enjoyed the highest sectoral wage in Ireland in 2020 (€53,755 per person engaged)
In contrast, persons engaged in the Construction sector had the lowest wage (€24,688 per person engaged)

	SMEs (<250 persons engaged)	Large (250+ persons engaged)	All enterprises
Industry	52700	54781	53755
Construction	21728	56948	24688
Distribution	26539	28517	27142
Services	27172	47389	33324
Total Business Economy	29304	45324	34364

Total Purchases by Enterprises in the Business Economy

The Services sector had the largest share of total purchases in the business economy in Ireland in 2020 (37.3%)
The Industry and Distribution sectors accounted for 33.5% and 25.7% respectively of total business economy purchases
The smallest sector was Construction with just 3.5% of total purchases in the Irish business economy
Purchases amounted to €555.7bn in 2020 of which SMEs accounted for 43.5% (€241.5bn)¹

¹ Values for Construction purchases and Total Business Economy purchases, by size class, were corrected on Tuesday, 13 December 2022.

For long labels below use to display on multiple lines	Total purchases
Industry	33.5
Construction	3.5
Distribution	25.7
Services	37.3

Total Business Costs in the Business Economy

In 2020, Services enterprises accounted for the largest proportion of business costs in the total business economy (38.4%), followed by Industrial enterprises (32.8%)
Large enterprises combined accounted for 55.0% of all business costs in the business economy, while SMEs accounted for the remaining 45.0%
The Distribution and Construction sectors combined accounted for 28.8% of all business costs in the total business economy

	SMEs (<250 persons engaged)	Large (250+ persons engaged)	All enterprises
Industry	17.1	45.7	32.8
Construction	7	1.2	3.8
Distribution	43.1	10.2	25
Services	32.8	42.9	38.4

5.1 Breakdown of personnel costs in the total Business Economy by sector and size class, 2020

5.2 Breakdown of personnel costs in the total Business Economy, EU27 countries, 2019

5.3 Total purchases by enterprises in the Business Economy by sector and size class, 2020

5.4(a) Breakdown of Business Costs in Industry by size class, 2020

5.4(b) Breakdown of Business Costs in Construction by size class, 2020

5.4(c) Breakdown of Business Costs in Distribution by size class, 2020

5.4(d) Breakdown of Business Costs in Services by size class, 2020

5.4(e) Total Business Costs in the Business Economy by sector and size class, 2020

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Table 5.1 Breakdown of personnel costs in the total Business Economy¹ by sector and size class, 2020
Sector and size class²	Personnel costs	Wages & salaries	Social security costs	Social security costs as a % of personnel costs	Wages & salaries per person engaged
	€m	€m	€m	%	€uro
Industry	15,298	14,012	1,285	8.4	53,755
SMEs (<250)	7,548	6,773	774	10.3	52,700
Large (250+)	7,750	7,239	511	6.6	54,781
Construction	4,295	3,885	412	9.6	24,688
SMEs (<250)	3,446	3,132	318	9.2	21,728
Large (250+)	849	753	95	11.2	56,948
Distribution	11,046	10,120	926	8.4	27,142
SMEs (<250)	7,486	6,878	608	8.1	26,539
Large (250+)	3,560	3,243	318	8.9	28,517
Services	29,321	26,919	2,403	8.2	33,324
SMEs (<250)	16,650	15,269	1,380	8.3	27,172
Large (250+)	12,672	11,650	1,022	8.1	47,389
Total Business Economy	59,960	54,935	5,026	8.4	34,364
SMEs (<250)	35,129	32,051	3,080	8.8	29,304
Large (250+)	24,831	22,884	1,946	7.8	45,324
*Source:* CSO Structural Business Surveys
¹The total business economy includes NACE Rev. 2 Sections B to N (excluding K) and R92, R93, S95 and S96.
²Totals may differ due to rounding.

Table 5.2 Breakdown of personnel costs in the total Business Economy¹, EU27 countries, 2019
	Personnel costs	Wages & salaries	Social security costs	Social security costs as a % of personnel costs
	€m	€m	€m	%
European Union (27 countries)	4,123,953	3,222,368	901,585	21.9
Belgium	125,843	94,510	31,333	24.9
Bulgaria	16,384	13,956	2,428	14.8
Czech Republic	63,041	46,653	16,388	26.0
Denmark	93,427	85,767	7,660	8.2
Germany	1,238,275	1,014,590	223,686	18.1
Estonia	8,449	6,373	2,076	24.6
Ireland	66,538	59,396	7,142	10.7
Greece	32,764	26,217	6,547	20.0
Spain	350,152	272,164	77,988	22.3
France	762,070	547,161	214,909	28.2
Croatia	15,052	13,155	1,897	12.6
Italy	422,413	302,976	119,437	28.3
Cyprus	5,888	5,057	831	14.1
Latvia	7,945	6,424	1,520	19.1
Lithuania	12,806	12,579	226	1.8
Luxembourg	16,214	14,201	2,013	12.4
Hungary	37,872	32,188	5,684	15.0
Malta	3,301	3,081	221	6.7
Netherlands	221,394	177,671	43,723	19.7
Austria	131,543	101,411	30,132	22.9
Poland	129,569	107,620	21,950	16.9
Portugal	56,377	43,554	12,823	22.7
Romania	44,669	43,171	1,498	3.4
Slovenia	15,076	13,120	1,956	13.0
Slovakia	23,176	17,320	5,856	25.3
Finland	66,418	54,678	11,740	17.7
Sweden	157,299	107,375	49,924	31.7
*Source:* Eurostat
¹ The total business economy covers NACE Rev. 2 Sections B to N (excluding K) and S95. Note that R92, R93 and S96 are excluded from the sectoral definition of the business economy here as these sectors are not available from Eurostat.

Table 5.3 Total purchases by enterprises in the business economy¹ by sector and size class, 2021
	Total purchases²	Percentage of total Business Economy
	€m	%
Industry	186,311	33.5
SMEs (<250 persons engaged)	39,031
Large (250+ persons engaged)	147,280
Construction³	19,306	3.5
SMEs (<250 persons engaged)	16,123
Large (250+ persons engaged)	3,183
Distribution	143,037	25.7
SMEs (<250 persons engaged)	112,049
Large (250+ persons engaged)	30,987
Services	207,087	37.3
SMEs (<250 persons engaged)	74,331
Large (250+ persons engaged)	132,756
Total Business Economy³	555,741	100.0
SMEs (<250 persons engaged)	241,536
Large (250+ persons engaged)	314,207
*Source:* CSO Structural Business Surveys
¹The total business economy includes NACE Rev. 2 Sections B to N (excluding K) and R92, R93, S95 and S96.
² Totals may differ due to rounding.
³ Values for Construction purchases and Total Business Economy purchases were corrected on Tuesday, 13 December 2022.

Table 5.4(a) Breakdown of Business Costs in Industry by size class, 2020
	SMEs (<250 persons engaged)		Large (250+ persons engaged)		Total¹
	€m	%	€m	%	€m	%
Purchases
Materials acquired	21,172	44.6	27,951	18	49,123	24.2
Fuel & energy	1,755	3.7	496	0.3	2,251	1.1
Goods for resale without further processing	3,883	8.2	61,928	39.9	65,810	32.4
Industrial services supplied by others	2,942	6.2	8,213	5.3	11,154	5.5
Non-industrial services	2,084	4.4	2,914	1.9	4,997	2.5
R&D services supplied to the enterprise	1,682	3.5	12,000	7.7	13,682	6.7
Royalties paid	2,197	4.6	20,353	13.1	22,551	11.1
Management & marketing fees	2,371	5.0	11,862	7.6	14,232	7.0
Agency costs	42	0.1	144	0.1	186	0.1
Other expenses	905	1.9	1,420	0.9	2,325	1.1
Purchases total	39,033	82.2	147,281	94.8	186,311	91.9
Other costs
Wages & salaries	6,773	14.3	7,239	4.7	14,012	6.9
Other labour costs	774	1.6	511	0.3	1,285	0.6
Excise duty and other indirect taxes	902	1.9	324	0.2	1,226	0.6
Other costs total	8,449	17.8	8,074	5.2	16,523	8.1
Total costs (purchases + other costs)	47,482	100.0	155,355	100.0	202,834	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.

Table 5.4(b) Breakdown of Business Costs in Construction by size class, 2020
	SMEs (<250 persons engaged)		Large (250+ persons engaged)		Total¹
	€m	%	€m	%	€m	%
Purchases
Materials acquired	5,641	28.9	847	21.0	6,488	27.5
Fuel & energy	244	1.2	31	0.8	274	1.2
Goods for resale without further processing	34	0.2	2	0.1	36	0.2
Industrial services supplied by others	57	0.3	5	0.1	63	0.3
Hire of equipment	209	1.1	68	1.7	277	1.2
Commercial rent	41	0.2	11	0.3	52	0.2
Insurance costs	113	0.6	25	0.6	138	0.6
Banking costs	4	0.0	2	0.0	6	0.0
Agency costs	232	1.2	54	1.3	286	1.2
Subcontractors	8,313	42.6	1,683	41.8	9,996	42.4
Other expenses	1,234	6.3	456	11.3	1,690	7.2
Purchases total	16,123	82.5	3,183	79.0	19,306	81.9
Other costs
Wages & salaries	3,132	16.0	753	18.7	3,885	16.5
Other labour costs	314	1.6	96	2.4	410	1.7
Other costs total	3,446	17.6	849	21.1	4,295	18.2
Total costs (purchases + other costs)	19,569	100.0	4,032	100.0	23,601	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.

Business in Ireland 2020

Business Costs in Ireland

Business Costs in Ireland

Wages & salaries accounted for 91.6% of personnel costs for the total business economy in 2020

Breakdown of Personnel Costs

Social Security Costs as a Percentage of Personnel Costs

EU27 Social Security Costs as a Percentage of Personnel Costs

Wages & Salaries in the Total Business Economy

Wages & Salaries per Person Engaged

Total Purchases by Enterprises in the Business Economy

Total Business Costs in the Business Economy

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Table 5.4(c) Breakdown of Business Costs in Distribution by size class, 2020
	SMEs (<250 persons engaged)		Large (250+ persons engaged)		Total¹
	€m	%	€m	%	€m	%
Purchases
Goods for resale without further processing	97,712	81.4	24,679	71.3	122,391	79.2
Fuel & energy	322	0.3	142	0.4	464	0.3
Agency costs	105	0.1	69	0.2	174	0.1
Sales & marketing	1,455	1.2	1,682	4.9	3,137	2.0
Insurance costs	235	0.2	64	0.2	299	0.2
Commercial rent	631	0.5	489	1.4	1,120	0.7
Royalties paid	5,007	4.2	1,042	3.0	6,049	3.9
Management fees	1,483	1.2	456	1.3	1,939	1.3
R&D services supplied to the enterprise	738	0.6	349	1.0	1,088	0.7
Purchases of business services	939	0.8	569	1.6	1,508	1.0
Other expenses	3,422	2.9	1,446	4.2	4,868	3.1
Purchases total	112,049	93.4	30,987	89.5	143,037	92.5
Other costs
Wages & salaries	6,878	5.7	3,243	9.4	10,121	6.5
Social security costs	608	0.5	318	0.9	926	0.6
Indirect taxes	439	0.4	67	0.2	506	0.3
Other costs total	7,925	6.6	3,628	10.5	11,553	7.5
Total costs (purchases + other costs)	119,974	100.0	34,615	100.0	154,590	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.

Table 5.4(d) Breakdown of Business Costs in Services by size class, 2020
	SMEs (<250 persons engaged)		Large (250+ persons engaged)		Total¹
	€m	%	€m	%	€m	%
Purchases
Goods for resale without further processing	40,183	44.0	14,239	9.8	54,422	22.9
Fuel & energy	1,275	1.4	1,147	0.8	2,422	1.0
Agency costs	496	0.5	220	0.2	716	0.3
Sales & marketing	2,334	2.6	1,716	1.2	4,050	1.7
Insurance costs	898	1.0	166	0.1	1,064	0.4
Commercial rent	1,324	1.4	332	0.2	1,657	0.7
Royalties paid	2,973	3.3	57,545	39.4	60,518	25.5
Management fees	3,336	3.7	7,744	5.3	11,080	4.7
R&D services supplied to the enterprise	7,641	8.4	9,523	6.5	17,164	7.2
Purchases of business services	1,726	1.9	9,668	6.6	11,394	4.8
Other expenses	12,145	13.3	30,456	20.9	42,600	18.0
Purchases total	74,331	81.4	132,756	91.0	207,087	87.3
Other costs
Wages & salaries	15,269	16.7	11,650	8.0	26,919	11.3
Social security costs	1,380	1.5	1,022	0.7	2,402	1.0
Indirect taxes	375	0.4	474	0.3	849	0.4
Other costs total	17,024	18.6	13,146	9.0	30,170	12.7
Total costs (purchases + other costs)	91,355	100.0	145,902	100.0	237,257	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.

Table 5.4(e) Total Business Costs in the Business Economy by sector and size class, 2020
	Industry		Construction		Distribution		Services		Total¹
	€m	%	€m	%	€m	%	€m	%	€m	%
Purchases
of which: SMEs (<250 persons engaged)	39,033	21.0	16,123	83.5	112,049	78.3	74,331	35.9	241,536	43.5
Large (250+ persons engaged)	147,281	79.1	3,183	16.5	30,987	21.7	132,756	64.1	314,207	56.5
Purchases total	186,311	100.0	19,306	100.0	143,037	100.0	207,087	100.0	555,741	100.0
Other costs
of which: SMEs (<250 persons engaged)	8,449	51.1	3,446	80.2	7,925	68.6	17,024	56.4	36,844	58.9
Large (250+ persons engaged)	8,074	48.9	849	19.8	3,628	31.4	13,146	43.6	25,697	41.1
Other costs total	16,523	100.0	4,295	100.0	11,553	100.0	30,170	100.0	62,541	100.0
Purchases + Other costs
of which: SMEs (<250 persons engaged)	47,482	23.4	19,569	82.9	119,974	77.6	91,355	38.5	278,380	45.0
Large (250+ persons engaged)	155,355	76.6	4,032	17.1	34,615	22.4	145,902	61.5	339,904	55.0
Total costs (purchases + other costs)	202,834	100.0	23,601	100.0	154,590	100.0	237,257	100.0	618,282	100.0
*Source:* CSO Structural Business Surveys
¹Totals may differ due to rounding.