Oireachtas Joint and Select Committees

Wednesday, 10 July 2024

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Sub-Minimum Rates of the National Mininimum Wage: Discussion

9:30 am

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
Link to this: Individually | In context | Oireachtas source

Another comment was made that we have the second highest minimum wage in Europe. That needs to be borne in mind.

Deputy Paul Murphy raised points about a large amount of informal employment going on where employers are taking on people, including my family members. I have teenagers who are working and being paid more than the minimum wage because employers choose to do so. Due to the employment situation, it is hard to find workers and if they find people who are prepared to do it to a good level, they are prepared to pay.

I am concerned about spillover. According to the ESRI, 80% of the 15,000 people affected are being paid more than the minimum threshold. That leaves approximately 3,000 people. Deputy Paul Murphy spoke about people not being able to pay rent and so forth and there may well be people in that situation, but I do know how many of the 3,000 are included. That brings us back to the question of whether the State should be stepping in to support employers and that is back to a cost on the taxpayer and the economy. It is not free money. Significant thought needs to be given to this. I am concerned. I believe there will be an impact on the take-up of employment, especially for youngsters aged 15 to 17 and upwards, in informal employment. They will be the most affected. Does Mandate have any thoughts on that?