Public sector salaries on the rise

Public sector workers can now expect to earn better wages than their private sector counterparts.

09:36 15 July 2005

Public sector workers can now expect to earn better wages than their private sector counterparts, according to new research.

The Chartered Institute of Personnel and Development (CIPD) found that over the past four years, public sector employees have enjoyed larger salary rises than those in the private sector - opening up a 17 per cent hourly pay gap.

Additionally, the CIPD suggests that those in the public sector are likely to have a better pension settlement.

The study comes ahead of the Office of National Statistics' (ONS) publication of the latest public sector employment figures.

John Philpott, CIPD chief economist, said that the common stereotype of the public sector as a poorly paid area should be revised in the light of these findings.

"If one compares the median worker in both the private and public sectors for instance, the public sector worker is better off by 12 a week," he said.

"It is only among the top 25 per cent of earners where the private sector outperforms their public sector - a case of the fat cats enabling the private sector to be top dog."

The CIPD suggests that since 2001 the public sector has been the main source of employment growth in the UK and that 75,000 posts were created during the past 12 months.