Dáil Éireann Debate, Tuesday - 2 November 2021
9. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has read the 2021/2022 report from a group (details supplied); and if he will make a statement on the matter. [53135/21]
View answerThe Government has been clear in our belief that a legacy of the pandemic must be better pay, terms and conditions for everyone, particularly for those on low pay. We are committed, therefore, to progressing to a living wage over the lifetime of this Government.
Currently there is no official living wage in Ireland. The Living Wage Technical Group, which comprises members including Vincentian Partnership for Social Justice, TASC, NERI and SIPTU calculates a living wage by estimating the cost of a basic basket of goods, services and expenses required to maintain a “minimum essential living standard”. The Partnership estimates the living wage for 2021/22 as €12.90 per hour.
Officials in my Department have reviewed the report from the Partnership. However, it is important to note that this report is not connected to or endorsed by the Low Pay Commission and it is separate to the Programme for Government commitment to “progress to a living wage over the lifetime of the Government”.
In progressing to a living wage, we need to recognise that many businesses have been badly affected by the pandemic. We need to make sure that we proceed in a way that does not affect employment, both in terms of the numbers employed and the hours worked by employees. That would be counter-productive.
Earlier this year I asked the Low Pay Commission to examine the Programme for Government commitment and to make recommendations on the best approach.
The Commission is undertaking research on the topic and the terms of reference for this research were noted by Cabinet earlier this year.
The report will consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could progress towards a living wage.
It will do this by looking at international evidence on living wages, examining different calculation methods, examining the policy implications and outlining options of moving to a living wage in Ireland.
The findings and recommendations in the Commission’s report, which I expect to receive later this year, will inform Government on the best practical approach to progress to a living wage in Ireland.
