Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

As the Deputy is aware, the Minister for Employment Affairs and Social Protection is responsible for setting the national minimum wage, on the recommendation of the Low Pay Commission. The current minimum wage is set at €9.25 and the third report of the Low Pay Commission recommended that this be increased by 30 cent per hour.

The Government welcomed that recommendation. We acknowledge that it is a modest increase but one that is ahead of the rate of inflation and average increases in earnings. This would be the fourth increase in the minimum wage since 2011, and the second under this Government.  I will consider the consequences of this change in the context of budget 2018.

In terms of the public service as employer, it should be noted that the recent Public Service Pay Commission report found that lower paid public servants receive a pay premium of 15% compared to their equivalent private sector colleagues. Based on data available to my Department, more than 94% of public service employees are on salary points in excess of €25,000 per annum. The suggested wage at €11.70 per hour based on the Civil Service 37 hour standard net working week equates to an annual salary of €22,589.

Any of those currently on an annual salary of less than €22,589 could be receiving remuneration in excess of the suggested living wage through additional premium payments in respect of shift or atypical working hours, or are on salary scales that progress to the suggested living wage through incremental progression.

Under the recent public service stability agreement, from January 2018 pay in the public service will be further adjusted.  The pay increases provided for under the agreement are progressively weighted towards the lower paid with benefits ranging from 7.4% to 6.2% over the term to the end of 2020.

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