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This section outlines some of the key statistics from the structural business surveys around the business costs faced by enterprises in Ireland. Personnel costs has been analysed already in other chapters[1], however, this chapter takes a closer look at the elements that make up personnel costs which are wages & salaries and employers’ social security costs. The chapter also examines total purchases in the business economy and how purchases are broken down by sector and size class.
Personnel costs are defined as the total remuneration, in cash or in kind, payable by an employer to an employee. Personnel costs include taxes and employees' social security contributions retained by the unit as well as the employer's compulsory and voluntary social contributions.
Personnel costs are made up of:
Social security costs for the employer include employer's contributions to the PRSI scheme, superannuation funds, PRSA’s and other pension schemes. Also included are insurance premiums, employer’s liability insurance and private health premiums paid on behalf of employees[1].
In the total business economy in 2012, nearly €39.2 billion was paid in personnel costs. Almost €5.1 billion or 13.0% of this was in the form of employers’ social security payments. The percentage was higher for large enterprises at 14.6% compared to small and medium enterprises (SMEs) at 11.9%. See Figure 6.1 and Table 6.1.
| Social security costs | Wages and salaries | |
| SMEs (<250) | 11.9 | 88.1 |
| Large (250+) | 14.6 | 85.4 |
| Total Business economy | 13 | 87 |
Personnel costs can also be analysed by broad sector and size class. Industry paid the highest percentage of personnel costs in the form of employers’ social security payments at 16.1%. Large industrial enterprises paid close to €5.4 billion in personnel costs in 2012 and over €0.9 billion or 17.5% of this was employers’ social security payments. Compared to large enterprises, SMEs in Industry paid a lower percentage at 13.9%. See Figure 6.2 and Table 6.1.
| SMEs (<250) | Large (250+) | All enterprises | |
| Industry | 13.9 | 17.5 | 16.1 |
| Construction | 12.2 | 8.1 | 11.7 |
| Distribution | 12 | 11 | 11.7 |
| Services | 11.1 | 13.9 | 12.2 |
| Total Business Economy | 11.9 | 14.6 | 13 |
Enterprises in the Construction and Distribution sectors paid the lowest proportion of personnel costs in the form of employers’ social security at 11.7% in both sectors.
It is possible to compare the breakdown of personnel costs across the EU27 using data from Eurostat[1]. The reference year used is 2011, as data for 2012 is incomplete for some large countries. See Figure 6.3 and Table 6.2.
| Social security costs as % of personnel costs | |
| Sweden | 31 |
| France | 30.3 |
| Italy | 28.3 |
| Belgium | 26.6870025688964 |
| Czech Republic | 26.2222091171787 |
| Estonia | 25.6044487427466 |
| Slovakia | 25.0900553196964 |
| Portugal | 22.9027746080095 |
| Lithuania | 22.7597386150651 |
| Austria | 22.3170097932942 |
| Romania | 21.6428621438073 |
| Spain | 21.0132698937903 |
| Hungary | 20.579429160429 |
| Finland | 19.7196650636009 |
| Latvia | 19.4577795745111 |
| Netherlands | 18.483136539183 |
| Germany | 17.6752005765056 |
| Poland | 17.0711207235137 |
| Bulgaria | 15.9503631961259 |
| Ireland | 13.4334507276231 |
| Slovenia | 13.4024371376828 |
| Cyprus | 13.2567108620987 |
| United Kingdom | 13.0654502938062 |
| Luxembourg | 12.961857199725 |
| Denmark | 8.50686496438276 |
| Malta | 6.55230937083283 |
Ireland paid a relatively low rate of employers’ social security costs at 13.4% of personnel costs in 2011 compared to the majority of other EU countries. There were only five countries, including the UK at 13.1%, that paid a rate lower than Ireland. The countries that paid the highest rates of employers’ social security costs included Sweden at 31.0%, France at 30.3% and Italy at 28.3%.
Wages & salaries
Specifically focusing on wages & salaries, there was almost €34.1 billion paid in wages & salaries in the total business economy in Ireland in 2012. Almost half of this figure, at 48.2%, was paid in the Services sector while Industry and Distribution both accounted for just under a quarter. The Construction sector accounted for 4.9% of wages & salaries in the total business economy. See Figure 6.4 and Table 6.1.
| For long labels below use to display on multiple lines | Wages and salaries |
|---|---|
| Industry | 22.4 |
| Construction | 4.9 |
| Distribution | 24.5 |
| Services | 48.2 |
It is possible to compare the average wages per employee across sector and size class[1]. In the total business economy, the average wages paid to employees was just over €33,200. There was a significant difference between the average wages paid in SMEs at over €29,700 compared to large enterprises at almost €40,600. See Figure 6.5 and Table 6.1.
Industry had the highest average wages in the business economy at over €43,300, with employees in SMEs paid over €36,300 on average and employees in large enterprises paid €50,400. The lowest average wages in the business economy was in the Distribution sector at under €28,300, with employees in SMEs and large enterprises paid similar average amounts.
[1] The number of employees in this calculation was sourced from the business surveys whereas the data for the number of employees in Table 2.1 were taken from Business Demography statistics which come from administrative sources.
| SMEs (<250) | Large (250+) | All enterprises | |
| Industry | 36321.2487752137 | 50400.1459221596 | 43317.9044694604 |
| Construction | 28600.2891718988 | 55076.1421319797 | 30516.8200775322 |
| Distribution | 28580.3118721898 | 27484.9791393076 | 28260.9358639409 |
| Services | 28942.5732589189 | 42003.9480134074 | 32886.1315445262 |
| Total Business Economy | 29748.6578259074 | 40597.3219094098 | 33224.7283983225 |
Purchases of goods and services
Purchases of goods and services include the value of all goods and services purchased during the accounting period for resale or consumption in the production process (excluding capital goods). The goods and services may be resold with or without further transformation, completely used up in the production process or be stocked.
Services purchases during the reference period are included regardless of whether they are industrial or non-industrial services. Industrial services are, for example, repairs and maintenance, installation work and technical studies. Non-industrial services are, for example, legal and accountancy fees, patents and license fees, insurance premiums, transport services for goods and personnel and advertising costs[1].
Total purchases in the business economy in 2012 were over €240.4 billion. Distribution was the sector with the largest share of purchases at 36.7%, closely followed by Services and Industry with 31.7% and 30.5% per cent respectively. Construction accounted for only 1.1% of total purchases. See Figure 6.6 and Table 6.3.
| For long labels below use to display on multiple lines | Total purchases |
|---|---|
| Industry | 30.5 |
| Construction | 1.1 |
| Distribution | 36.7 |
| Services | 31.7 |
Purchases of goods or services that were resold in the same condition that they were received amounted to some €101.8 billion in 2012 or 42.3% of total purchases in the business economy. These types of purchases were more prevalent in SMEs at 58.6% compared to large enterprises at 25.2%. See Figure 6.7 and Table 6.3.
The sector with the highest proportion of purchases for resale was the Distribution sector at 83.1% of total purchases. This proportion was similar for both SMEs and large enterprises in the Distribution sector.
The proportion of purchases for resale in the Services sector was 26.2% of total purchases. There was a significant difference in the percentage for SMEs at 48.9% compared to large enterprises at 11.9%.
| SMEs (<250) | Large (250+) | All enterprises | |
| Industry | 9.5 | 12.6 | 11.6 |
| Construction | 1.6 | 0 | 1.4 |
| Distribution | 82.6 | 84.7 | 83.1 |
| Services | 48.9 | 11.9 | 26.2 |
| Total Business Economy | 58.6 | 25.2 | 42.3 |
Go to next chapter >>> Detailed Business Sectors
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