As part of Budget 2020, the Government accepted in full the recommendations of the Low Pay Commission that the Minimum Wage be increased by 30c to €10.10. The Commission made its recommendation on the basis of an orderly Brexit. In developing its recommendation on the National Minimum Wage, the Low Pay Commission assessed various economic indicators such as changes in earnings, exchange rates, employment, unemployment, productivity, international minimum wage comparisons, the need for job creation and the likely impact of the National Minimum Wage changes on levels of employment, cost of living, and national competitiveness.
Although there is still optimism of a Brexit deal being ratified, the possibility of a disorderly Brexit is still present and therefore the economic circumstances which will apply in 2020 continue to be very uncertain. Nevertheless, the Government has accepted in full the recommendation of the Commission, but has decided to defer a decision on when the Commission’s recommendation will commence until the outcome of Brexit becomes clearer.
I intend to make provision in the Social Welfare Budget Bill to allow me to set the National Minimum Wage for 2020 in line with the Commission’s proposals, once the situation in respect of Brexit is clarified.