A NEW study from the Economic and Social Research Institute (ESRI) indicates significant differences in rates of pay within the public sector.

Following on from an ESRI report issued last month which showed that public sector workers were earning up to 26 per cent more than their counterparts in the private sector in 2006, the latest study indicates that the greatest public sector premium on offer is for those employed in education.

Meanwhile, those working in the Civil Service and local authorities earn the lowest public service premium.

However, on average, such workers still earn between 9 per cent and 12 per cent more than their counterparts in the private sector.

The so-called “pay penalty” in 2006 for private sector workers was most severe in the hotels and restaurants segment and in wholesale and retail, while those working in financial intermediation and construction were least affected by the pay differential.

While last month’s study drew on factors such as education and qualifications in coming to its conclusion, the latest study, which focuses on job evaluations, has come up with a similar result.

Both ESRI studies indicate that the overall public sector pay premium increased from 14 to 26 per cent between March 2003 and October 2006.

Given the succession of wage agreements that have been introduced since October 2006, and the further tightening of the labour market in 2007, the report’s authors conclude it is unlikely that the public sector pay premium estimated in its reports would have been substantially reduced prior to the introduction of the public sector pension levy in March.