Dáil Éireann Debate, Thursday - 13 July 2017
82. Deputy Anne Rabbitte asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her views on whether the current allowable food and board deductions for au pairs are fair and representative of the cost of providing these services, in view of Ireland's high cost of living. [34337/17]
View answerThe Low Pay Commission was asked, as part of its 2017 Work Programme, to review the allowances for board and lodgings provided for under the National Minimum Wage Act 2000 (National Minimum Wage Hourly Rate of Pay) Order 2000 (SI No.95/2000).*
In determining an employee’s average hourly rate, certain reckonable components can be taken into account. Thus, if an employer provides an employee with full board and lodgings or lodgings only or full board only, a monetary allowance can be included as reckonable pay. As these rates were set in 2000 and have not been altered since that date, the Commission was requested to examine and advise on the appropriate inflator that should be applied to the rates set in 2000 and recommend new rates taking into account the time that has passed since the rates were first set.
*Rates for Board and Lodgings
Under the National Minimum Wage Act 2000 (National Minimum Hourly Rate of Pay) Order 2000 (SI No. 95/2000) certain reckonable components may be taken into account for all workers to determine an employee’s average hourly rate. The Act provides for the following amounts:
€54.13 for board and lodgings per week, or €7.73 per day;
€32.14 for board only per week, or €4.60 per day;
€21.85 for lodgings only per week, or €3.14 per day.
The inclusion of this provision in the national minimum wage legislation was recommended by the Inter-Departmental Group on Implementation of a National Minimum Wage that reported in 1999. It was the view of the Inter-Departmental Group at the time that the monetary value of the allowances for the purpose of the national minimum wage would not be at market value and would be similar to the amount permitted in the Employment Regulation Orders that existed at the time.
The Commission submitted its report on the allowances for board and lodgings provided for under the National Minimum Wage Act 2000 in May. Having considered its contents it is intended to bring the report to Government next week and it will be published thereafter.
