National Minimum Wage

Dáil Éireann Debate, Thursday - 23 February 2023

Thursday, 23 February 2023

Questions (85, 86)

Thomas Gould

Question:

85. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment if he intends to equalise minimum wage for those under 20 years. [9247/23]

Gary Gannon

Question:

86. Deputy Gary Gannon asked the Minister for Enterprise, Trade and Employment the reason for paying 17-, 18- and 19-year-olds below the minimum wage per hours worked. [6174/23]

Written answers

Minister of State at the Department of Enterprise, Trade and Employment

I propose to take Questions Nos. 85 and 86 together.

The Low Pay Commission was requested, as part of its 2016 work programme, to examine the sub-minimum rates (special training and youth rates) of the national minimum wage and to report its recommendations.

The Low Pay Commission, having examined all available evidence and submissions, and having considered a range of options, made recommendations in its subsequent 2017 report to simplify youth rates based on age and to abolish training rates unless an employee is part of a proper apprenticeship programme already approved by the State.

The Low Pay Commission considered abolishing youth rates but concluded that the minimum wage rate would then no longer offer any recognition of the difference between a young inexperienced worker and a more experienced colleague, which could lead to employers no longer seeing a value in hiring young people (and potentially impact on youth employment rates). The Low Pay Commission also concluded that abolishing youth rates could potentially act as an incentive for young people to leave education and take up employment, which could have a negative impact on their long-term prospects.

Ultimately, the Commission recommended that the youth rates should be simplified and be changed to an age-based system as opposed to experience-based rates. These recommendations were accepted by Government and the changes came into effect on 4 March 2019.

It is worth noting that the Commission recommended that the rate for employees under the age of 18 should also be retained in acknowledgement of the fact that such employees have a statutory restriction on their working hours and conditions under the Protection of Young Persons (Employment) Act 1996.

Recently there has been some debate relating to subminimum rates of the national minimum wage. In this context, last year the then Tánaiste and Minister for Enterprise, Trade and Employment asked the Low Pay Commission to re-examine the issues around retaining or removing the youth rates and to make recommendations on the subject. To inform its work, the Low Pay Commission has asked the Economic and Social Research Institute to conduct background research on this issue under the terms of the Low Pay Commission-ESRI Research Partnership Agreement.

The Low Pay Commission’s report and recommendations on sub-minimum rates are expected during 2023.

While the issue of subminimum youth rates 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 National Minimum Wage.

Question No. 86 answered with Question No. 85.