NURSE WAGES AND THEIR CONTEXT DATABASE SUMMARY 2006
INTERNATIONAL COUNCIL OF NURSES NURSE WAGES AND THEIR CONTEXT 2006 The Nurse Wage Questionnaire was sent to 11 National Nurses Associations, members of the ICN International Workforce Forum. Reponses were received from Canada, Denmark, Germany, Iceland, Ireland, Japan, Norway, Sweden, UK and USA. Most of the data throughout this analysis is presented in Purchasing Power Parity, or PPP. A PPP is a number that standardizes currency in order to facilitate international comparison. Purchasing power is equal when the ratio between countries price level of a fixed basket of goods and services is equal. A purchasing power parity exchange rate equalizes the purchasing power of different currencies in their home countries for a given basket of goods. The basket of consumer goods contains number of the most commonly bought food and household items, e.g. household items, personal goods and services, tobacco, leisure goods, households services, housing, alcoholic drinks and other categories, depending on the country s survey. These special exchange rates are often used to compare the standards of living of two or more countries. The adjustments are meant to give a better picture than comparing gross domestic products (GDP) or salaries using market exchange rates. Please note that this type of adjustment to an exchange rate is controversial because of the difficulties of finding comparable baskets of goods to compare purchasing power across countries. In this analysis, PPPs will be used to represent wages and are an indication of or proxy for the standard of living of health care workers until a better indicator is developed. In other words, nurses earning the same level of PPP should have similar standards of living and buying potential. The most current PPP rates for the countries responding to the wage survey are: Purchasing Power Parity (PPP)* 2004 Canada 1.250 Denmark 8.330 Germany 0.913 Iceland 94.100 Ireland 1.00 Japan 129 Norway 9.540 Sweden 9.060 UK 0.63 USA 1.00 Note: to transform currency into PPPs divide the amount you wish to transform (e.g. salary) by the country specific PPP rate. *Taken from National Health Accounts, Health System Financing, EIP, World Health Organization 2
Salary Data Clinical Nurses: Average Public Sector Salaries (in PPP) across Employment Sector 50,00 45,00 40,00 35,00 30,00 Salary (in PPP) 25,00 20,00 Series1 15,00 10,00 5,00 CN: hospital starting salary CN: hospital top salary CN: community starting salary CN: community top salary Employment Sector CN: general practice starting salary CN: general practice top salary Starting Salaries for Clinical Nurses working in Public Sector Hospitals (PPP) 40,00 35,00 30,00 25,00 Starting Salary (PPP) 20,00 15,00 10,00 Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA 5,00 CN: hospital starting salary Country Starting Salaries for Clinical Nurses working in Public Sector Hospitals (PPP) Canada Denmark Germany Iceland Ireland Japan Norway Sweden USA UK 39,768.25 29,641.06 26,286.97 26,142.40 28,878.00 24,282.00 28,197.06 24,922.74 39,276.00 31,467.30 Please note that the great majority of nurses work in the private sector in the US and therefore this figure represents the status of a minority of US employed nurses, contrary to other countries where the majority of nurses are employed in the, e.g. Canada, UK. 3
Starting Salaries for Clinical Nurses working in Public Sector Community Settings (in PPP) 45,00 40,00 35,00 30,00 25,00 Starting Salary (in PPP) 20,00 15,00 10,00 Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA 5,00 CN: community starting salary Country Starting Salaries for Clinical Nurses working in Public Sector Community Settings (in PPP) Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA 41,16 30,097.24 28,119.02 28,878 24,282.00 28,301.89 27,516.56 31,467.30 Starting Salaries for Clinical Nurses working in Public Sector General Practice Settings (in PPP) 45,00 40,00 35,00 30,00 25,00 Starting Salary (in PPP) 20,00 15,00 10,00 Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA 5,00 CN: general practice starting salary Country Starting Salaries for Clinical Nurses working in Public Sector General Practice Settings (in PPP) Canada Denmark Germany Iceland Ireland Japan Norway Sweden USA UK 35,942.40 28,822.06 42,164.00 28,301.89 25,231.79 4
Clinical Nurse: National Public Sector Salaries by Employment Sector (in PPP) 100,00 90,00 80,00 Salary (in PPP) 70,00 60,00 50,00 40,00 30,00 20,00 10,00 Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA CN: hospital starting salary CN: hospital top salary CN: community starting salary CN: community top salary Employment Sector CN: general practice starting salary CN: general practice top salary 5
Nurse Manager: National Public Sector Salaries by Employment Sector (in PPP) 120,00 100,00 Salary (in PPP) 80,00 60,00 40,00 20,00 Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA NM: hospital starting salary NM: hospital top salary NM: community starting salary NM: community top salary Employment Sector NM: ministry of health starting salary NM: ministry of health top salary NM: Hospital starting salary Canada Denmark Germany Iceland Ireland Japan Norway Sweden USA UK 44,922.40 38,381.51 36,144.58 38,624.19 45,386.00 34,577.13 32,306.84 34,38 44,054.23 NM: Community starting salary Canada Denmark Germany Iceland Ireland Japan Norway Sweden USA UK 49,987.20 37,173.35 35,887.78 44 180 34,577.13 36,048.57 NM: Ministry of Health starting salary Canada Denmark Germany Iceland Ireland Japan Norway Sweden USA UK 39,566.33 78 066 6
Nurse Educator: National Public Sector Salaries by Employment Sector (in PPP) 300'00 250'00 200'00 Salary (in PPP) 150'00 100'00 50'00 Canada Denmark Germany Iceland Ireland Japan Norway Sweden UK USA NE: educational institution starting salary NE: educational institution NE: clinical instructor top salary starting salary Employment Sector NE: clinical instructor top salary NE: educational institution starting salary Canada Denmark Germany Iceland Ireland Japan 40,745.60 26,983.19 33,954.00 31,253.05 53,72 28,878.55 Norway Sweden USA UK 34,297.69 30,099.34 52,152 40,881.98 NE: clinical instructor starting salary Canada Denmark Germany Iceland Ireland Japan Norway Sweden 41,770.88 26,983.19 26,286.97 47,429.00 USA UK 7
Comparative Starting Salaries by Profession 3.00 2.50 Rating (compare with Clinical Nurse = 1) 2.00 1.50 1.00 0.50 clinical nurse physician teacher police physiotherapist accountant nursing auxiliary Germany Iceland Ireland Japan Sweden Canada Denmark USA UK Country In this question countries were asked to compare starting salaries of nurses (clinical nurse = 1) to the starting salaries of other professions. In most countries, all professions starting salaries in the respondent countries, with the exception of the Nursing Auxiliary, were rated equal or higher than the starting salary of a clinical nurse. Country Germany Iceland Ireland Japan Sweden Canada Denmark UK USA* Average Rating Clinical Nurse 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Physician 2.00 1.80 1.29 1.26 2.00 2.5 1.23 1.05 0.71 1.76 Teacher 2.00 1.05 1.02 1.08 1.03 0.94 1.07 1.01 1.13 1.15 Police 1.00 0.90 0.93 1.10 1.10 0.91 1.00 1.26 0.83 0.96 Physiotherapist 1.00 1.15 1.25 0.94 0.90 1.22 1.00 1.00 1.19 1.10 Accountant 1.00 1.15 2.17 0.98 1.50 2 1.06 0.83 1.59 Nsg. Auxiliary 0.90 0.73 0.92 0.73 0.80 0.65 0.91 0.71 0.41 0.75 Please note that the great majority of nurses work in the private sector in the US and therefore this figure represents the status of a minority of US employed nurses, contrary to other countries where the majority of nurses are employed in the, e.g. Canada, UK. 8
Comparative Staring Salaries by Profession (average) 1.80 1.60 Average Rating (across countries) 1.40 1.20 1.00 0.80 0.60 0.40 Average Rating 0.20 clinical nurse physician teacher police physiotherapist accountant nursing auxiliary Profession 9
Inflation Rate Data National Inflation Rate vs. Clinical Nurse Salary Inflation Rate by country 4.50% 4.00% 3.50% 3.00% Inflation Rate 2.50% 2.00% 2005 Nt'l 2005 Clinical Nurse Salary Inflation Rate 1.50% 1.00% 0.50% Germany Iceland Ireland Japan Sweden Norway Canada Denmark USA UK Country 10
CANADA Comparison between National Inflation Rates and Public Sector Wage Inflation Rates 25.00% 2 15.00% Inflation Rate 1 5.00% DENMARK Comparison between National Inflation Rates and Public Sector Wage Inflation Rate 12.00% 1 8.00% Inflation Rate 6.00% 4.00% 2.00% 11
GERMANY Comparison between National Inflation Rate and Public Sector Wage Inflation Rate 4.00% 3.50% 3.00% 2.50% Inflation Rate 2.00% 1.50% 1.00% 0.50% ICELAND Comparison between National Inflation Rates and Public Sector Wage Inflation Rate 4 35.00% 3 25.00% Inflation Rate 2 15.00% 1 5.00% 12
IRELAND Comparison between National Inflation Rates and Public Sector Wage Inflation Rate 45.00% 4 35.00% 3 25.00% Inflation Rate 2 15.00% 1 5.00% JAPAN Comparison between National Inflation Rates and Public Sector Wage Inflation Rates 3.00% 2.50% 2.00% Inflation Rate 1.50% 1.00% 0.50% 13
NORWAY Comparison between National Inflation Rates and Public Sector Wage Inflation Rates 6 5 4 Inflation Rate 3 2 1 SWEDEN Comparison between National Inflation Rates and Public Sector Wage Inflation Rate 18.00% 16.00% 14.00% 12.00% 1 Inflation Rate 8.00% 6.00% 4.00% 2.00% 14
USA Comparison between National Inflation Rates and Public Sector Wage Inflation Rate 3.50% 3.00% 2.50% 2.00% Inflation Rate 1.50% 1.00% 0.50% UK Comparison between National Inflation Rates and Public Sector Wage Inflation Rate 2.50% 2.00% 1.50% Inflation Rate 1.00% 0.50% *Note: each country comparison must be viewed in isolation do not compare across countries. 15
Actual Inflation Rates 6.00% 5.00% 4.00% Inflation Rate 3.00% 2.00% (revised) average over (revised) average over (revised) 1.00% 1.00% Germany Iceland Ireland Japan Sweden Norway Canada Denmark USA UK Country 16
Glossary Clinical staff nurse Evaluates, plans, and administers nursing care to patients. Provides prescribed medication and treatment. Aides physician during exams and treatment. Monitors and records patient condition and notifies physician when appropriate. Monitors patient care provided by nursing auxiliaries and others. Requires completion of nursing school and state license. Nurse educator Responsible for assessing learning needs, preparing and delivering quality educational experiences to students/employees utilizing the most effective and efficient methods possible. Nurse manager (starting) Manages individual clinical unit on a 24 hour basis. Oversees patient care, nursing services, and related staff. Plans, directs, and coordinates schedules and training for nursing staff. Adjusts resources to respond to emergency or unusual circumstances. Usually requires a nursing degree, a license, and 3 5 years relevant experience or equivalent. Community/home care Professional nursing care provided primarily in patients homes or in the community primary health care centres. Clinical instructor Plans and conducts a variety of inservice orientation programs, educational programs and educational services for clinical personnel; coordinates educational programs for an assigned service line. MK/NdC/14.02.07 17