Price to Household Income Ratio Explained
What is 'Gross Household Income'?
In the context of these figures, and generally aligning with the CSO's methodology for the Survey on Income and Living Conditions (SILC), gross household income refers to the total income received by all members of a household from all sources, before the deduction of direct taxes (like income tax and Universal Social Charge - USC), social insurance contributions (PRSI), employee pension contributions, and inter-household transfers paid.
Key components included are:
- Employee income (wages, salaries, bonuses, benefits-in-kind)
- Employer's social insurance contributions (often included in comprehensive definitions as they are an indirect benefit)
- Self-employment income
- Income from occupational and private pensions
- Other direct income sources (e.g., rental income, though some investment income like from savings accounts or shares might be excluded in certain specific CSO income definitions but SILC aims for comprehensive regular income flows)
- All social transfers received by the household (e.g., state pensions, child benefit, jobseeker's payments, illness/disability payments, housing supports, cost-of-living measures like energy credits).
A household is typically defined by the CSO as a person or group of people who live together in the same dwelling and share common living arrangements and/or income.
Gross Household Income for Ireland, 2020 - 2025
| Year | Annualised Mean Gross Household Income (€) |
|---|---|
| 2020 | 73,444 |
| 2021 | 75,585 |
| 2022 | 90,272 |
| 2023 | 98,332 |
| 2024 | 101,774 (Projection) |
| 2025 | 106,150 (Projection) |
The provided figures represent the annualised mean gross household income in Ireland for the years 2020 through 2023, with projections for 2024 and 2025.
How the Numbers Were Calculated:
- 2020 (€73,444): This figure is based on the mean weekly gross household income of €1,412.39 reported in the Central Statistics Office (CSO) Survey on Income and Living Conditions (SILC) 2020. It was annualised by multiplying the weekly figure by 52.
- 2021 (€75,585): This figure is based on the mean weekly household gross income of €1,453.57 from the CSO SILC 2021. It was annualised by multiplying the weekly figure by 52.
- 2022 (€90,272): This figure is based on the mean weekly household gross income of €1,736 (income year 2022) reported in the CSO SILC 2023. It was annualised by multiplying the weekly figure by 52.
- 2023 (€98,332): This figure is based on the mean weekly household gross income of €1,891 (income year 2023) reported in the CSO SILC 2024. It was annualised by multiplying the weekly figure by 52.
- 2024 (Projection €101,774): This is an approximate projection. It was calculated by taking the 2023 annualised mean gross household income (€98,332) and applying the Central Bank of Ireland's initial estimate for nominal Compensation per Employee (CPE) growth of 3.5% for 2024, as stated in their Quarterly Bulletin Q1 2025.
- 2025 (Projection €106,150): This is also an approximate projection. It was calculated by taking the projected 2024 figure (€101,774) and applying the Central Bank of Ireland's forecast for nominal CPE growth of 4.3% for 2025, also from their Quarterly Bulletin Q1 2025.
Why 'Gross Household Income' over 'Average Salary'?
"Gross household income" was chosen over "average salary" because it provides a more comprehensive measure of the total financial resources available to a household unit. Here's why:
- Holistic View: "Gross household income" aggregates income from all members of a household and from all sources. This includes not just salaries from employment, but also income from self-employment, pensions, social welfare benefits (like child benefit, unemployment assistance, state pensions), and other income sources such as rental income. "Average salary," on the other hand, typically refers to the mean or median earnings of an individual from their employment only.
- Reflects Household Living Standards: Households, rather than just individuals, are often the primary unit of consumption and economic decision-making. Gross household income better reflects the collective resources available to meet living expenses, make investments, and save. An individual's salary might not capture the full economic picture if other household members contribute income or if the household receives significant social transfers.
- Captures Non-Employment Income: Many households rely on income sources beyond salaries. For example, retired households depend on pensions and social transfers, while households with unemployed members may rely on social welfare payments. "Average salary" would not account for these crucial income streams.