Dáil Éireann Debate, Tuesday - 18 October 2016
638. Deputy Jan O'Sullivan asked the Minister for Jobs, Enterprise and Innovation the way she will amend the National Minimum Wage (Low Pay Commission) Act to enable the Government to meet its own commitment in the programme for Government for a national minimum wage of €10.50 per hour over the lifetime of this Dáil; when such amendments will be made; and if she will make a statement on the matter. [30219/16]
Amharc ar fhreagraThe 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 1st January last.
The Commission’s second report was submitted to Government in July and the recommendation made by the Commission for an increase of 10 cents per hour was approved by Government on October 11 The increase will come into effect on 1 January next.
The Programme for Partnership Government contains a commitment to reduce poverty levels by supporting an increase in the minimum wage to €10.50 per hour over the next five years and rely on the annual recommendations of the Low Pay Commission on the level of adjustment each year.
The independence of the Low Pay Commission is firmly established in the National Minimum Wage (Low Pay Commission) Act 2015 (the Act). The Commission can only operate in accordance with that statutory remit and make recommendations to the Minister in accordance with the criteria that are clearly and explicitly set out in the Act.
There are no plans to make any changes to the legislation as it currently stands.
