Dáil Éireann Debate, Wednesday - 25 October 2023
81. Deputy Noel Grealish asked the Minister for Enterprise, Trade and Employment if he has figures on the cost of hiring people on the national minimum wage or national living wage, which will include ten days' sick pay and the cost of auto-enrolment after its introduction in 2024; if he has any estimate on the cost of hiring people in the years up to 2026; and if he will make a statement on the matter. [46853/23]
View answerMy Department is currently working with the Department of Social Protection on an assessment of the combined impact of the measures proposed to improve working conditions in Ireland, this includes moving to a living wage, pension auto-enrolment, the right to request remote work, sick pay legislation and improvements to parent’s leave and parent’s benefit. This analysis is due to be published by the end of the year.
The Low Pay Commission Annual Report 2023 projects a living wage (at 60% of the projected median wage) of €15 per hour in 2026. Statutory sick pay is paid at a replacement rate of 70% of a person’s normal pay, up to a maximum of €110 per day. Auto-enrolment will be introduced on a phased basis with an employer contribution of 1.5% of gross earnings up to €80,000 in the first three years.
The Government is aware that this has been a challenging year for firms as they grapple with the effects of inflation and the aftermath of the COVID-19 pandemic. We are committed to supporting enterprise and Budget 2024 continues this approach. Among the measures included, are:
• The 9% VAT reduction for gas and electricity is being extended for an additional 12 months, until 31st October 2024;
• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil which were due to expire on 31st October 2023 are being extended until 31st March 2024;
• An increase in the limit on the amount that an investor can claim relief on under the Employment and Investment Incentive Scheme, to €500,000;
• An increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods;
• Reduced Capital Gains Tax rate of 16% for Angel Investors in innovative SMEs, on gains of up to €3 million;
• An increase in the R&D tax credit from 25% to 30%, as well as increasing the first-year upfront payment from €25,000 to €50,000, which will be of particular benefit to SMEs;
• The commencement of a range of amendments to the Key Employee Engagement Programme for the attraction and retention of staff;
• Introduction of the Increased Cost of Business Scheme, which will provide a once-off grant to benefit a significant number of small and medium businesses at a cost of €250 million.
