High-Earning Households Feel "Broke" Despite Good Salaries in Ireland

Many high-earning households in Ireland, despite having two solid incomes, report feeling financially strained. Michael Sherlock of NFP Ireland notes these professionals are well-educated and stably employed but struggle with constant financial pressure and building momentum.

Average gross pay in Ireland was €43,800 last year, with 45% of employees earning €30,000 or less. In contrast, 7.2% of employees earn over €100,000, accounting for 29% of gross income. This group is growing, with almost 420,000 individuals or jointly assessed couples expected to exceed €100,000 next year. Companies like Amazon, Google, and Microsoft paid average annual salaries up to €155,000 in 2024. Ireland's progressive tax system means higher earners pay significantly more, with about half of all income tax coming from those earning over €100,000.

The median disposable income for an Irish household is €61,666 annually, or €5,140 monthly. Households with this income typically earn about €74,000 a year. The top 10% of households, earning around €280,000 annually, have an average disposable income of €14,716 monthly after paying approximately €112,730 in taxes and charges. This "pinched" feeling can persist across income levels due to taxes, deductions, and lifestyle creep.

Lifestyle creep, or increasing spending as income rises, is a major factor. This can involve upgrading cars, homes, and increasing discretionary spending on holidays and subscriptions, which depletes disposable income. Cian Callaghan of Metis Ireland suggests that for 70-80% of people, better financial structure, such as consolidating salaries into a joint account and tracking all expenditures, can reveal more disposable income. Additionally, life-stage squeezes, like having young children or dependents in college, significantly increase outgoings, contributing to financial pressure.