Between 2019-2022 there was no clear trend in the public-private pay differential due to virus impacts on the labour market and earnings in the period, Central Statistics Office (CSO) data shows.

Thus, it is too early to see if reductions in the public-private pay differential between 2018-2020 are a definitive trend, the statisticians say.

Enterprise size

Including and excluding the size of enterprise from the models has a significant effect on the pay differential.

When firm size is included, public sector employees are worse off in terms of gross pay with discount ranges of -4.4% to -6.6% in 2022.

When firm size is excluded, public sector employees are slightly better off in terms of gross pay in comparison with private sector employees, with differential ranges from a premium of 0.9% to a discount of -1.4% in 2022.

Trends in the public-private pay differential show that public sector employees on higher incomes are worse off in terms of gross pay in comparison with private sector employees.

Public sector discount

This is known as the public sector discount.

However, the trend reverses for those on lower incomes in the public sector who are better off in terms of gross pay in comparison with private sector employees.

This is known as the public sector premium.