Dáil Éireann Debate, Thursday - 18 October 2018
319. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection if she has considered the impact increasing the national minimum wage has on income disregards to qualify for payments; and if she will make a statement on the matter. [42787/18]
Amharc ar fhreagraI was pleased to announce that the National Minimum Wage will increase from €9.55 per hour to €9.80 per hour with effect from the 1st January 2019. This builds on the 2018 increase from €9.25 per hour and will benefit over 150,000 employees. According to CSO figures, on average in 2017, employees earning the National Minimum Wage or less represented 7.4% of all employees.
Across schemes in my Department, the use of earnings disregards and tapers in the assessment of earnings, and the provision of in-work supports such as the Working Family Payment and the Back to Work Family Dividend scheme, ensure that a person will be better off taking up employment.
While my Department's scheme's earnings disregards are not linked to the minimum wage, I was pleased to announce on Budget Day that the earnings disregards for the One-Parent Family Payment and Jobseeker's Transitional schemes will increase by €20 per week, from €130 to €150 per week, from the end of March 2019. This will bring these earnings disregards to their highest ever level.
In addition, the €5 increase in the maximum weekly rates of payment from end-March will also work to increase the level of means a person can have, including from earnings, and still qualify for a payment. For instance, a single person in receipt of Jobseeker's Allowance (JA) and working 18 hours on the minimum wage over 3 days currently qualifies for a JA payment of €132 per week plus earnings of €171.90 per week (total income of €303.90 per week). With the increase in the weekly rates of payment and in the minimum wage, the person will qualify for a JA payment of €134 per week plus weekly earnings of €176.40 (total income of €310.40). This is an increase of €6.50 per week, or 2.1%.
