Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The programme for Government makes the commitment to "progress to a living wage over the lifetime of the Government". I have spoken before about how the pandemic has caused many of us to reconsider and re-evaluate what an essential worker is. We now understand that it is a much broader group of workers than people would have originally described, many of whom are on low pay and in the private sector. The Government has been clear in our belief that a legacy of the pandemic must be better pay, terms and conditions for everyone, but particularly for those on low pay. We are committed, therefore, to honouring the Government commitment to progressing to a living wage over the lifetime of this Government. In doing so, we need to recognise that many businesses have been badly affected by the pandemic and are struggling to pay existing wages. We need to make sure that we proceed in a way that does not cause jobs to be lost in terms of the numbers of people employed, or would see employees having their hours cut. To do so would be counterproductive.

Earlier this year I asked the Low Pay Commission to examine the programme for Government commitment and to make recommendations on the best approach. The commission is currently undertaking research on the topic and the terms of reference for this research were noted by Cabinet earlier this year. The report will consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could progress towards it. It will do this by looking at international evidence on living wages, examining different calculation methods, examining the policy implications and outlining options for moving to a living wage in Ireland. The findings and recommendations in the commission's report, which I expect to receive before the end of the year, will inform Government on the best practical approach to proceed.

While the living wage initiative is being considered, the Government will be guided by the recommendations of the Low Pay Commission with regard to any future changes to the existing national minimum wage. The national minimum wage seeks to find the balance between a fair and sustainable rate for low-paid workers and one that does not have significant negative consequences in terms of employment and competitiveness.

See this speech in context