National Minimum Wage

Dáil Éireann Debate, Wednesday - 23 October 2019

Wednesday, 23 October 2019

Questions (57, 60, 72)

Paul Murphy

Question:

57. Deputy Paul Murphy asked the Minister for Employment Affairs and Social Protection the reason there has been a delay in the increase of the minimum wage. [43640/19]

Willie O'Dea

Question:

60. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection if the increase in the national minimum wage will proceed on 1 January 2020 if there is a ratified Brexit withdrawal agreement in place prior to that date; and if she will make a statement on the matter. [43607/19]

John Brady

Question:

72. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the date for the increase in the minimum wage as recommended by the Low Pay Commission; and if she will make a statement on the matter. [43519/19]

Written answers

Minister for Employment Affairs and Social Protection

I propose to take Questions Nos. 57, 60 and 72 together.

In developing its recommendation on the National Minimum Wage, the Low Pay Commission assesses various economic indicators such as changes in earnings, exchange rates, employment, unemployment, productivity, international minimum wage comparisons, the need for job creation and the likely impact of the National Minimum Wage changes on levels of employment, cost of living, and national competitiveness.  

Numerous economic commentators, both in Ireland and overseas, have highlighted that any form of Brexit has the potential to impact negatively on the Irish economy.  Accordingly, although the Low Pay Commission recommended an increase in the national minimum wage of 30c to €10.10, it did so on the assumption of an orderly Brexit and acknowledged that the Government might wish to reserve its position in the event of a disorderly Brexit.

Although we are all optimistic of a deal being ratified, the possibility of a disorderly Brexit is still present and, therefore, the economic circumstances which will apply in 2020 continue to be very uncertain.  Nevertheless, the Government accepted the recommendation of the Commission but decided to defer a decision on when the Commission’s recommendation will commence until the nature of Brexit become clearer.

I intend, therefore, to make provision in the Social Welfare Budget Bill to declare the National Minimum Wage in 2020 in line with the Commission's proposals once the situation in respect of Brexit is clarified.  If a Brexit deal is agreed before the end of the year, I expect that the minimum wage will be changed in January 2020 as it was in previous years.