Dáil Éireann Debate, Thursday - 21 July 2016
405. Deputy Niall Collins asked the Minister for Public Expenditure and Reform the discussions his Department has had with suppliers or service contractors to his Department or to agencies of his Department to ensure that employees of such suppliers and contractors are paid the living wage of €11.50 per hour; the cost of implementing this wage for these employees; and if he will make a statement on the matter. [24181/16]
View answerIt is important that Ireland's statutory National Minimum Wage and the Living Wage concept are not conflated. The Living Wage is a voluntary societal initiative centred on the social, business and economic case to ensure that, wherever it can be afforded, employers will pay a rate of pay that provides an income that is sufficient to meet an individual's basic needs, such as housing, food, clothing, transport and healthcare. The Living Wage is voluntary and has no legislative basis and is therefore not a statutory entitlement and cannot be imposed on suppliers or contractors.
It is different to the National Minimum Wage which is a statutory entitlement and has a legislative basis. This Government established the Low Pay Commission to annually assess the appropriate level of the National Minimum Wage. The commission's second report on the national minimum wage was submitted to Government on 19 July 2016 and the recommendation was made by the Commission that the hourly rate for an experienced adult worker be increased by 10 cents will be considered by Government in the context of Budget 2017.
Statutory minimum rates of pay may also be supplemented by social transfers such as Child Benefit, Family Income Supplement or health, education or housing assistance payments where the need arises and to reflect family circumstances.
