I propose to take Questions Nos. 897 and 898 together.
The Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate, ensuring that all decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.
The Commission submitted its first report in July 2015. Its recommendation to increase the minimum wage from €8.65 to €9.15 per hour was accepted by Government and the increase came into effect on 1 January last.
The Commission’s second report on the national minimum wage is due to be submitted today. Any recommendation made by the Commission will be considered by Government in the context of Budget 2017.
As well as making recommendations regarding the national minimum hourly rate of pay, by 19 July, the Low Pay Commission, which is independent in the performance of its functions, has also been requested to examine the appropriateness of the sub-minima rates as currently provided for in the National Minimum Wage Acts with regard in particular to their impact on youth unemployment rates and participation in education. This report was due by the end of February 2016, but an extension to the end of October 2016 was sought and has been granted to the Commission.
The Commission has also been requested to examine the issues surrounding the preponderance of women on the NMW and report its views in relation to the underlying causes. This report is also due by end October 2016.