Dáil Éireann Debate, Friday - 16 December 2016
533. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation her views on the programme for Government commitment to increase the minimum wage undermining the independent and evidence based approach of the Low Pay Commission. [40840/16]
View answerThe Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate, ensuring that all decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.
The Commission submitted its first report in July 2015. Its recommendation to increase the minimum wage from €8.65 to €9.15 per hour was accepted by Government and the increase came into effect on 1st January last.
The Commission’s second report was submitted to Government in July this year and the recommendation made by the Commission for an increase to €9.25 per hour was approved by Government on 11 October. I signed the Order on 13 October to effect the increase from 1 January next.
The Programme for Partnership Government contains a commitment to reduce poverty levels by supporting an increase in the minimum wage to €10.50 per hour over the next five years and rely on the annual recommendations of the Low Pay Commission on the level of adjustment each year.
The independence of the Low Pay Commission is firmly established in the National Minimum Wage (Low Pay Commission) Act 2015 (the Act). The Commission can only operate in accordance with that statutory remit and make recommendations to the Minister in accordance with the criteria that are clearly and explicitly set out in the Act.
