Oireachtas Joint and Select Committees

Wednesday, 24 January 2024

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Regulatory and Legislative Changes Required for the Transposition of the Adequate Minimum Wages Directive: Discussion

Ms Maeve McElwee:

Absolutely. The Low Pay Commission is responsible for that assessment of what is happening in the economy and makes its recommendation in July of each year, as the Deputy knows. That is based on the prevailing circumstances within the economy at the time of the recommendation that goes to the Government. The Low Pay Commission is an independent body and has the opportunity to consult, which we fully support, in setting the national minimum wage. That does not necessarily mean that in all circumstances, between the date of recommendation and the date of implementation, the economic environment may not change and, indeed, change substantially. From the employer's perspective, the purpose of the letter was to indicate that employers over the course of the next 12 months expect to find significant competitiveness challenges. They have implemented this year's recommendation. We are not seeking in any way to pause or move back from that but we are looking at adjusting a timeline to achieve a living wage as opposed to adjusting the national minimum wage. There are serious competitiveness challenges, and we see businesses going out of business daily, which clearly has an impact on employment for the employees-----

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