Dáil Éireann Debate, Wednesday - 7 February 2024
158. Deputy Pearse Doherty asked the Minister for Enterprise, Trade and Employment the estimated number of workers who benefitted from the increase in the minimum wage in 2024; the number of workers who will benefit from the second step in moving towards the living wage in 2025; and the number of workers who will benefit from the third step in moving towards the living wage in 2026. [5689/24]
Amharc ar fhreagraAs the Deputy will be aware, The National Minimum Wage increased to €12.70 per hour from 1 January 2024. This represents an €1.40 increase, or 12.4%, on the 2023 rate of €11.30 per hour and is considered the second year of a proposed four-year path towards reaching the living wage of 60% of the median wage by January 2026. The Low Pay Commission has estimated that the figure of €12.70 is 55.1% of the hourly median wage.
The Central Statistics Office (CSO) has informed me that in Q3 2023 there were 132,800 employees who reported that they earned the national minimum wage, with a further 38,900 reporting that they earned less than the national minimum wage of €11.30. The total number of employees in Q3 2023 was 2,287,000. A combined total of 173,000 employees reported that they earned the national minimum wage or less. This represents 7.8% of the total, excluding those recorded as ‘not stated’. Employees can earn less than the National Minimum Wage if they are among groups exempted by the National Minimum Wage Acts or if they are paid sub-minimum (youth) rates of the National Minimum Wage.
It is not possible to estimate the number of workers who will be in receipt of the minimum wage in future years as this is contingent on the future development of the labour market and any further changes in the National Minimum Wage.
Under the National Minimum Wages Acts the Low Pay Commission is required to make a recommendation on the National Minimum Wage by the third Tuesday of July each year.
The Low Pay Commission’s next recommendation on the minimum wage is due in July 2024 and will relate to the 2025 National Minimum Wage.
Under the National Minimum Wages Acts the Low Pay Commission is obliged to consider a range of criteria when making its recommendations on the minimum wage. These criteria include changes in earnings and income distribution, productivity, employment and competitiveness.
The Commission has the discretion to use adjustment mechanisms to recommend slowing down or speeding up progress towards the living wage, in response to any specific circumstances that have had a significant impact on economic conditions.
Government will make a decision on the appropriate rate of the 2025 National Minimum Wage following receipt of the Low Pay Commission’s recommendation in July.
