Enterprise Committee to discuss the sub minimum wage rates with Mandate, ISME and ESRI

The following representatives are due to appear:
• Greg Caffrey, Mandate Trade Union,
• Neil McDonnell, Irish Small and Medium Enterprises (ISME),
• Dr. Paul Redmond, Economic and Social Research Institute (ESRI).

Speaking ahead of the meeting, Committee Cathaoirleach Deputy Maurice Quinlivan said, “The topic of sub-minimum wages has received significant attention in recent years, at both a national and international level. In 2023, it was found that Ireland was in breach of its labour rights obligations under the European Social Charter, due to sub-minimum wage rates being deemed too low to allow a decent standard of living.”

“The minimum wage is currently €12.70 per hour, however legislation allows employers to pay young workers an age-based sub-minimum rate. Those aged under 18 can be paid 70% of the full rate, those aged 18 can be paid 80%, while those aged 19 can be paid 90%. Other types of workers are also exempt in legislation from being paid the full minimum wage rate."

“One of the arguments put forward in favour of sub-minimum wages for young people is to ensure that wages are not set at a rate that is so high that employers are discouraged from hiring them as they may have less experience and lower productivity than older workers. Meanwhile, others argue against sub-minimum youth rates as there should be ‘equal pay for equal work’, and age should not be used as a means of discrimination.”

Watch the meeting live here or on the Oireachtas smartphone app for Apple and Android.