Pat Breen (Clare, Fine Gael) | Oireachtas source

I thank Deputy Quinlivan for raising this question. The Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once a year, to examine the national minimum hourly rate of pay and to make recommendations to the Minister in respect of the rate, ensuring that all decisions are evidence-based, fair, sustainable and do not create significant adverse consequences for employment or competitiveness.

The commission submitted its first report in July 2015. Its recommendation to increase the minimum wage from €8.65 to €9.15 per hour was accepted by Government and the increase came into effect on 1 January this year.

In its first report, the commission recommended that anomalies in regard to PRSI which could adversely affect employer costs should be addressed. To that end, adjustments were made to PRSI in budget 2016, which have been provided for by my colleague, the Minister for Finance. These changes will assist employers in reducing costs, thus ensuring a continuing positive climate for job creation. Measures were also introduced to ensure that the benefit of the increase was not lost to taxation for the employee.

The Deputy will be aware that the commission’s second report on the national minimum wage was submitted to Government yesterday and the recommendation made by the commission that the national minimum hourly rate be increased by ten cent to €9.25 will be considered by Government in the context of budget 2017.

I reiterate that the independence of the Low Pay Commission is firmly established in the National Minimum Wage (Low Pay Commission) Act 2015. The commission can only operate in accordance with that statutory remit and make recommendations to the Minister in accordance with the criteria that are clearly and explicitly set out in the Act. I want to make it very clear that I cannot speak for the commission and I stress the value of its independence. Clearly, the commission has to look at the matter across all the criteria of the Act. We will look at the report over the next three months and the Minister will make a decision on it in respect of budget 2017.

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