Workers are facing a "substantial" wage squeeze of as much as 6% as inflation and rising mortgage rates eat away at their income.

Average weekly earnings are up just €20 a week on a year ago from €850.81 to €871.62, official figures released yesterday show.

The increase was just 2.4% from April, May and June last year to the same period this year, while average inflation over the same period was almost four times as high at 8.4%.

SIPTU economist Michael Taft said the projection for wage rises over all of 2022 is "around 3.5%".

He added: "It was never going to be the case that wages could maintain pace with inflation this year. So we are effectively seeing real-term wage cuts. And for this year we will see substantial real wage decreases. You're talking about people having cut anywhere from 5%, possibly even 6%; it is a lot.

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"We should note that this is an average so there are going to be groups who are worse."

Mr Taft said the low paid face two problems, adding: "Firstly they are probably struggling to keep up with the average. Secondly, we know from a recent study that the impact of inflation by income groups, that those in the lower income groups face an even higher inflation rate than the national average, because they have a lower income more of it is spent on the things, food and fuel, that are going up most."