Oireachtas Joint and Select Committees
Wednesday, 18 October 2023
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Low Pay Commission Recommendations on the National Minimum Wage: Discussion
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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I thank Mr. Courtney. I want to ask him a question about his submission.
The second last page referred to supports for vulnerable businesses in transitioning to the living wage and the Low Pay Commission has issued a welcome for the announcement of the increased cost of business grant of €250 million for 130,000 microbusinesses. The Low Pay Commission might have more detail on this than we do. That is €1,923 per business, which is about €1,000 short of the position of a 39-hour per week worker. I am not certain there is any targeting in this and there is no evidence that some, all or any of those 130,000 microbusinesses are paying their workers the minimum wage. In terms of how the Low Pay Commission thinks this fund is going to operate, it obviously has an opinion that this is going to be targeted but there is no evidence to support that, unless the commission has such evidence. It is just to go to 130,000 micro and small businesses.
With regard to the supports, a proposal has been floated whereby a PRSI rebate could form part of it for each of the workers who are below the 60%, and there have been other proposals. In light of the fact the section in the minimum wage Act for employers to go to the Labour Court to prove they cannot pay has never been used, would the Low Pay Commission stick by the notion that a move to the living wage, even a quick move to the living wage rather than a stepped-in one, would not damage employment? My belief is that this is the view of certain economists. Does the Low Pay Commission see there is a threat here? In that regard, how does it envisage €250 million spread over 130,000 businesses making that level of difference to businesses?