Gay Mitchell
Question:265 Mr. G. Mitchell asked the Minister for Enterprise, Trade and Employment if he will address the concerns of a person (details supplied) in Dublin 12; and if he will make a statement on the matter. [13952/05]
View answerWednesday, 4 May 2005
Questions (238)
Written answers
The National Minimum Wage Act came into effect in April 2000. Prior to the introduction of the legislation, the national minimum wage commission was appointed by the Government to advise on the introduction of a national minimum wage. The commission examined a number of issues including the social implications of a national minimum wage and the determination, implementation and enforcement of a minimum wage. It recommended that employees under the age of 18 should be entitled to 70% of the national minimum wage. This percentage was recommended to strike a balance between ensuring that young employees are not exploited and ensuring that the rate of pay does not encourage students to leave full-time education.
This recommendation was endorsed by the interdepartmental group on implementation of a national minimum wage which felt that a reduced rate for those under 18 raised important issues for national education and employment policies and required particularly careful consideration. In its report it stated:
The group is of the view that, having regard to the fact that there will always be a certain group of young people entering full time employment before the age of 18, that this group is among the most vulnerable in society and there is need to cater for them in the context of a national minimum wage. Nevertheless, it is also clear that the introduction of a national minimum wage has two possible effects on this group — a possible increase in the supply of such workers attracted by the minimum wage rate to leave education earlier than they would otherwise have done, and a possible reduction in demand for such workers by raising their price to beyond a level which employers were prepared to pay.
The sub-minimum rate for those under 18 was therefore recommended by the national minimum wage commission, endorsed by the interdepartmental group on the implementation of a national minimum wage and was subsequently implemented in the minimum wage legislation.