Earnings Analysis using Administrative Data Sources 2021

Distribution by Percentile

As is typical in earnings distributions, a relatively small number of high earners result in a positively skewed earnings distribution of employees in Ireland. In a positively skewed earnings distribution, mean earnings are greater than median earnings as the mean is increased by those higher earners. In such cases median earnings (the middle earner in the economy or sector) may be a more reflective figure of the average earnings of employees in the economy or sector. 

Figure 3.1 below shows the weekly earnings at each percentile on the earnings distribution for 2021. It also highlights the mean and median earnings for that year.

In 2021 the median weekly earnings were €644.55 (half of all jobs earned more than this amount and half earned less). 

Mean weekly earnings in 2021 were €820.95. Figure 3.1 below illustrates that almost 65.0% of employees earned less than the mean, while just over 35.0% earned more than the mean.

Distribution by Sex

Figure 3.2 presents the distribution of employments by weekly earnings and sex. It shows a greater proportion of female employees at the lower end of the distribution, when compared to male employees.

Distribution by Age Group

Figure 3.3 presents the distribution of employees by weekly earnings and age group. The 15-24-year age group has the highest proportion of employees at the lower end of the distribution. As age increases, the distribution of earnings flattens out, meaning a smaller proportion of employees in the lower end of the distribution. This trend continues up to the 50-59 years age group, where there is a small reversal of the trend, while for the 60 years and over age group there is a more significant movement in the proportion of employments at the lower end of the distribution. 

Distribution by Decile

Table 3.1 below shows the earnings at every 10th percentile in each of the years 2014 to 2021.

Figure 3.4 and Table 3.2 below, present the percentage change in earnings (year on year) at every 10th percentile.

There were significant increases in earnings in all percentiles displayed for 2019-2020, particularly at the lower end of the earnings distribution. For 2020-2021 there were increases in all percentiles except for the 10th percentile which saw a drop of -1.2%. When considering these results, it should be taken into account that the COVID-19 pandemic and the restrictions applied in response to it had a significant impact on the labour market in both 2020 and 2021. Earnings statistics for both years and comparisons with earlier years are impacted by changes in the composition of the labour market across 2020 and 2021 and when compared to earlier years. The level of earnings has also been impacted by COVID-19 income support schemes in place in 2020 and 2021.

Distribution by Economic Sector

Figure 3.5 and Table 3.3 show that, in 2021, 23.9% of all employments earned less than €400 per week. Employments earning between €400 and €800 per week accounted for 39.3% of all employments. Over a third (36.8%) of all employments earned more than €800 per week while 8.6% of employments earned €1,600 or more per week.

The economic sector with the highest proportion of employments earning less than €400 per week was the Accommodation & Food Services sector (60.3%), while the Information & Communication sector (32.3%) had the highest proportion of employments earning €1,600 or more per week.

Distribution by Economic Sector & Decile

Table 3.4 below presents the proportion of employments for each main economic sector by decile for the year 2021. The deciles are calculated based on the earnings of all employments.

Looking at the table we see that the sectors with the highest proportion of employments whose earnings are in the bottom decile of earnings are the Accommodation & Food Services sector (27.0%) and the Arts, Entertainment, Recreation & Other Services Activities sector (23.0%).

At the other end of the earnings distribution, the sectors with the highest proportion of employments whose earnings are in the top decile of earnings are the Information & Communication sector (35.0%) and the Financial, Insurance & Real Estate sector (24.0%).