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Living Wage

Dáil Éireann Debate, Thursday - 9 December 2021

Thursday, 9 December 2021

Questions (135)

Louise O'Reilly

Question:

135. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if consideration is being given by his Department to a State-wide move to a living wage, as based on the minimum essential standard of living formula used by the Living Wage Technical Group given the rising rate of inflation. [60803/21]

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Written answers

The programme for Government makes the commitment to "progress to a living wage over the lifetime of the Government". I have spoken before about how the pandemic has caused many of us to reconsider and re-evaluate what an essential worker is. We now understand that it is a much broader group of workers than people would have originally described, many of whom are on low pay and in the private sector.

The Government has been clear in its belief that a legacy of the pandemic must be better pay, terms and conditions for everyone, but particularly for those on low pay. We are committed, therefore, to honouring the Government commitment to progressing to a living wage over the lifetime of this Government. In doing so, we need to recognise that many businesses have been badly affected by the pandemic and are struggling to pay existing wages. We need to make sure that we proceed in a way that does not cause jobs to be lost in terms of the numbers of people employed, or would see employees having their hours cut. To do so would be counterproductive.

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 Low Pay Commission commissioned a team of researchers at the National University of Ireland, Maynooth (NUIM) to conduct supporting research on the living wage. Terms of Reference for this research were noted by Cabinet earlier this year. The Commission expects to receive this research before year-end.

Informed by this supporting research, the Commission intends to provide a report to me on the issues surrounding the progression to a living wage early in 2022.

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 it. It will do this by looking at international evidence on living wages, examining different calculation methods, examining the policy implications and outlining options for moving to a living wage in Ireland.

I can confirm that the calculation of a living wage on the basis of a minimum essential standard of living formula, as used by the Living Wage Technical Group, is being given consideration in the preparation of this report. Other calculation methods, such as a proportion of the median wage, are also being given consideration.

I look forward to receiving the Low Pay Commission’s report early next year. Their report will inform Government on the best practical approach to progress to a living wage in Ireland.

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