Public-private sector earnings gap widens

Public sector workers earn seven per cent on average more than their counterparts in the private sector, and the gap has doubled since the recession began, it was reported yesterday.

Analysis of official figures suggests that staff employed by the state are getting bigger pay rises, working fewer hours and receiving pensions far in excess of their peers.

Since Labour came to power, the number of public sector workers increased by 914,000 to more than six million – about a fifth of the workforce.

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Data published by the Office for National Statistics indicate that average earnings in the public sector rose to 22,405 last year, compared to 20,988 in the private sector.

The previous year non-state employees were just three per cent behind on this measure, and until 2005 they were receiving more, according to the findings. Since the recession started, many private sector

workers have had pay frozen or cut.

Last year the average public sector employee worked for 25 hours a week – a fall of an hour on the previous year, and two and a half hours less than private sector workers.

The average state employee also enjoys three or four more days of holiday a year, researchers found.

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And civil servants get employer pension contributions worth 19.4 per cent of their salary paid into final salary schemes each year. This is more than three times the average of six per cent paid by private sector firms into their employees' defined contributions schemes.

The researchers' analysis was validated by Straight Statistics, a group that campaigns for the accurate reporting of official data.

Director Nigel Hawkes said: "However you look at it, public sector workers have done better over the past decade – and the gap is widening."