The results of the survey, which looked at average remuneration levels in 24 out of the 25 member states, shows that there is a clear grouping of new member states with cheaper labour costs. Poland has the lowest cost of employment with a figure of €10,021. Seven countries including Slovakia, Hungary and Latvia, have a cost of employment less than €13,000.

In contrast with this, France tops the table with an average figure of €52,567, followed closely by Germany with €51,593. When assessing the impact of Budget 2008 on the overall cost of employment in Ireland, it should be noted that the budget in December did not add to the total cost in Ireland.

The survey also reveals that Ireland continues to have the lowest level of tax and social security as a percentage of total cost of employment at 15.92%. Budget 2008 further reduced this by almost 1%. It is interesting to note that Cyprus, which has the second lowest level, had a percentage of 17.87% in 2006 but this has increased to 19.60% in 2007.

In Ireland, income tax is low but the poor standard of public health care makes private healthcare a necessity that can cost an average of about €3,000 annually. Indirect taxes are high such as on cars - putting Irish cars at 30% above the Eurozone average. The Irish Government collects 28% of the cost of a new house in taxes and charges.

OECD countries' tax burdens back up to 2000 historic highs; Three countries - - Italy, Ireland and Korea - - saw their tax burdens rise by more than 1% between 2005 and 2006

Commenting on the results, Tax Partner, Brian McDonald stated:

"The Government tax policy continues to support business by maintaining a low tax environment on employment and thus trying to ensure that tax continues not to be a negative factor for business investment in Ireland."

"It is clear that the Baltic States and the eastern European countries continue to be a challenge to Ireland’s continued success. As those economies develop and improve their infrastructure, it may prove difficult to maintain Ireland’s success in attracting international investment. All businesses are becoming more focused on labour and transport costs. For manufacturing concerns it may also make commercial sense to locate closer to the European markets," he concluded.

The purpose of the Deloitte EU Employee Remuneration Survey is to provide a comparative analysis of remuneration levels across EU member states. A number of factors are examined including the total cost of employment, and cost of employment to the employee and to the employer.

Total cost of employment is the remuneration figure plus the cost of employment to the employer. In completing the survey the average remuneration levels for enterprises with 10 or more employees was taken as the benchmark. Employee tax is based on a married couple, one earner with two children, per annum. The survey covers all countries in the EU with the exception of Lithuania.