Statistics
Northern
Ireland Labour Costs
Overview
Labour costs in Northern Ireland are
generally lower than in the rest of the United Kingdom, and indeed
are among the lowest in Europe. The average earnings rate (including
overtime) for manual workers during 1996 was £6.84 per hour.
Basic minimum wage rates are fixed
either by collective agreements between employers' organisations
and trade unions or by a statutory wages regulation order.
All workers in Northern Ireland must
be insured under the National Insurance and Industrial Injuries
Scheme. The employers' contribution covers obligatory unemployment
payments, sickness, industrial injury and health service payments,
severance funds and a basic retirement pension. The rate is around
12.2% of basic wages paid.
Apart from these statutory payments,
many employers operate supplementary pension and private welfare
plans. Often they provide subsidised meals and recreational facilities.
Such optional extras could cost an additional 4%. Employers' liability
insurance costs a further 2% to 5% in manufacturing industries and
under 1% in service industries.
The levels of fringe costs (including
holiday pay) are indicated in the table below which compares labour
costs in manufacturing industry in Northern Ireland with those from
a selection of other countries.
As an industrially developed country
which is part of the EU and offering tariff-free access to the lucrative
markets of Europe, Northern Ireland's total labour costs are particularly
attractive especially when compared with the total labour costs
of other European countries. The system of taxation in Northern
Ireland is that which applies throughout the UK and is designed
to encourage enterprise and to reward profitable businesses.
Average Hourly Earnings of
Manual Workers
Average hourly earnings of
manual workers in the NI engineering industry, including non-wage
costs
|
|
£
|
$
1.56
|
DM
2.33
|
Yen
171
|
Won
1281
|
NT$
43
|
|
Skilled Maintenance Fitter/Electrician
|
5.86
|
9.14
|
13.65
|
1002
|
7507
|
252
|
|
Skilled Inspector
|
6.26
|
9.77
|
14.59
|
1070
|
8019
|
269
|
|
Skilled Setter
|
5.92
|
9.24
|
13.79
|
1012
|
7584
|
255
|
|
Skilled Machinist
|
5.91
|
9.22
|
13.77
|
1011
|
7571
|
254
|
|
Semi-Skilled Viewer
|
4.68
|
7.30
|
10.90
|
800
|
5995
|
201
|
|
Semi-Skilled Machinist
|
5.38
|
8.39
|
12.54
|
920
|
6892
|
231
|
|
Semi-Skilled Press Operator
|
4.88
|
7.61
|
11.37
|
834
|
6251
|
210
|
|
Storekeeper/Store Attendant
|
4.99
|
7.78
|
11.63
|
853
|
6392
|
215
|
|
Assembler/Process Operator
|
4.87
|
7.60
|
11.35
|
833
|
6238
|
209
|
|
Labourer/Unskilled Worker
|
4.56
|
7.11
|
10.62
|
780
|
5841
|
196
|
Source: Engineering
Employers' Federation, August 1996
International Labour Cost
Comparison
International Comparison:
Average hourly compensation of Industrial Labour - including non-wage
costs
|
Rate £1
= $1.50
|
$
|
£
|
Index
|
|
Germany
|
31.88
|
17.04
|
231
|
|
Switzerland
|
29.28
|
15.11
|
212
|
|
Belgium
|
26.88
|
14.25
|
195
|
|
Norway
|
24.78
|
13.47
|
179
|
|
Netherlands
|
24.38
|
13.44
|
177
|
|
Japan
|
24.19
|
12.80
|
176
|
|
Denmark
|
24.18
|
12.74
|
175
|
|
Sweden
|
23.66
|
11.94
|
171
|
|
USA
|
21.36
|
11.19
|
155
|
|
Finland
|
19.34
|
11.04
|
140
|
|
France
|
17.20
|
10.87
|
124
|
|
Italy
|
16.48
|
10.65
|
119
|
|
UK
|
13.77
|
8.55
|
100
|
|
Rep of Ireland
|
13.83
|
7.87
|
100.5
|
|
Spain
|
12.70
|
7.67
|
92
|
|
N. Ireland
|
11.00
|
6.84
|
80
|
|
Portugal
|
5.35
|
3.07
|
39
|
Source: US Dept of
Labor 1996
|
