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National Minimum Wage

Dáil Éireann Debate, Tuesday - 30 January 2018

Tuesday, 30 January 2018

Ceisteanna (575)

Donnchadh Ó Laoghaire

Ceist:

575. Deputy Donnchadh Ó Laoghaire asked the Minister for Employment Affairs and Social Protection the number of persons paid below the national minimum wage of €9.25 due to the exceptions for an employee in the first year after the date of first employment over 18 years of age and the second year after the date of first employment over 18 years of age; and if she will make a statement on the matter. [4473/18]

Amharc ar fhreagra

Freagraí scríofa

I was pleased to announce on Budget Day that the national minimum wage would increase by 30 cents, from €9.25 to €9.55 per hour, with effect from 1 January 2018.

Minimum wage legislation provides that in certain cases, sub-minima rates of the national minimum wage can be paid. Specifically, sub-minima rates can be paid to employees who are:

(i) under the age of 18;

(ii) in their first or second year of employment over 18 years of age;

(iii) undergoing a prescribed course of study or training (known as trainee rates).

Since the second quarter of 2016, the CSO, at the request of the Low Pay Commission, has included a question asking respondents if they were earning the national minimum wage or less in their Quarterly National House Survey (now replaced by the Labour Force Survey). In cases where the respondent was earning less than the minimum wage, they were asked the reason for this. The most recent data from this survey, published in April 2017, refers to the last three quarters of 2016 and finds that, on average, 5,800 people reported earning less than the National Minimum Wage due to being on an age-related rate with a further 5,700 earning less than the National Minimum Wage due to being on a special training rate. The number of responses provided was insufficient to enable the CSO to reliably determine the number for those over 18 in their first job for. It is therefore currently not possible to provide this figure to the Deputy. It should be noted that these figures will be revised by the CSO to reflect the Census of Population results, and the 2017 data should be published in the coming months.

I am pleased to state that the Low Pay Commission submitted a report to me in December 2017 with recommendations relating to the sub-minima rates. I am currently considering the Commission’s recommendations in this area and I will ensure that their report is laid before the House in the coming weeks.

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