Dáil Éireann Debate, Tuesday - 25 July 2023
384. Deputy John Brady asked the Minister for Enterprise, Trade and Employment the estimated amount it would cost to end the sub-minima national minimum wage rates for under 20s; and if he will make a statement on the matter. [36198/23]
View answerThe current sub-minima National Minimum Wage rates allow those aged less than 18 years to be paid 70 percent of the full National Minimum Wage rate, while those aged 18 years and 19 years can be paid 80 and 90 percent of the full rate, respectively.
In February 2022, the Low Pay Commission was asked by the Minister under Section 10 (4) (a) of the National Minimum Wage Act 2000 to re-examine the issues around retaining or removing the subminimum (age-related) rates and to make recommendations on the subject.
To inform its work, the LPC has asked the ESRI to conduct background research on this issue under the terms of the LPC-ESRI Research Partnership Agreement. This report is expected in the second half of 2023. That report will contain information about the number of workers on sub-minima rates which may allow for estimation of the amount it would cost employers to end the sub-minima National Minimum Wage rates for those under 20 years of age. The LPC’s report and recommendations on subminimum rates are expected by the end of 2023.
The Government supports the independence of the Low Pay Commission and while the issue of subminimum rates is being considered, the Government will continue to be guided by the recommendations of the LPC with regard to any future changes in the National Minimum Wage.
