Small businesses are paying their workers 6 per cent more than this time last year, according to a survey published yesterday, writes Barry O'Halloran.

The Irish Small and Medium-sized Enterprise (ISME) association annual survey of wages and conditions found that the pay in the sector increased by an average of 6 per cent in the last year, which was almost three times the rate of inflation during the same period.

But the report also shows that pay increased at a slower rate than the previous year, when workers in SMEs got a 6.2 per cent boost to their earnings.

The survey shows that retail workers got the best deal over the last year, with an average 7.1 per cent increase in pay.

IT staff were next in line with 6.9 per cent, and sales people with 6.6 per cent.

Craft workers and drivers had the lowest increases, with 5.8 per cent and 5.4 per cent respectively.

ISME said yesterday that wage rates for manual workers across all sectors rose by 6.3 per cent, which was in line with 2003. Unskilled labourers were paid an average of €17,541 during the year while skilled staff received €25,012. The average industrial wage is over €29,000.

Office staff were paid an average of €22,009 across all categories of business and employees.

The survey of over 400 companies, employing 12,000 staff, found that there is growing participation in pension schemes, up to 43 per cent this year from 39 per cent in 2003. However, it added that the take-up rate for personal retirement savings accounts (PRSAs) has been slower than expected.