Dáil Éireann Debate, Thursday - 7 April 2022
26. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will re-examine the minimum wage and raise it to €15 per hour considering the spiralling cost of living; and if he will make a statement on the matter. [18804/22]
View answerI acknowledge the cost of living is rising rapidly and that those on lower incomes are being disproportionately affected.
In relation to the minimum wage, since its establishment in 2015, the Low Pay Commission has been responsible for making annual recommendations to Government on the appropriate rate of the National Minimum Wage.
Since the establishment of the Low Pay Commission, the national minimum wage has increased from €8.65 per hour to €10.50 per hour between 2016 and 2022, a 21.4% increase. This compares with an increase in consumer prices of 7% in the 6 years to December 2021. The Minimum Wage has increased substantially in real terms over recent years.
The share of workers on the minimum wage in Ireland has also fallen consistently since the establishment of the Low Pay Commission. The share of workers on the minimum wage or less as a percentage of the total labour force has reduced from 9.3% in Q4, 2016 to 6.8% in Q4, 2020.
The Low Pay Commission is made up of an equal number of employer representatives, employee representatives, and independent members which helps to provide a balanced view when determining an appropriate rate for the National Minimum Wage. In addition, the establishing legislation requires the Low Pay Commission to give consideration to a range of issues when arriving at a recommendation for the appropriate National Minimum Wage rate. These issues include the cost of living, competitiveness and the likely effect that any proposed recommendation will have on future levels of employment.
I have been clear in my commitment to improving pay and terms and conditions for everyone, but particularly for those on low pay.
I am committed to progressing to a living wage over the lifetime of this Government. While the living wage initiative is being considered, the Government will continue to be guided by the recommendations of the Low Pay Commission with regard to any future changes in the minimum wage. The Low Pay Commission is required to submit its annual recommendation on the National Minimum Wage to me on or before the third Tuesday in July.
