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

I thank the Deputies. The directive is still under negotiation at European level as far as I am aware. It has to be agreed at European level before it can be transposed. I cannot give the Deputy a timeline on it unfortunately but we will transpose it once it is agreed. We are supportive of its general principles.

With regard to the increase in the national minimum wage, it is an 80 cent increase. It is the biggest single increase that has ever occurred other than the reversal of the €1 cut but I do not consider that to have been an increase. It is worth approximately €1,600 a year to somebody on the minimum wage who is working full-time. It brings us closer to the target of a living wage, which is recommended to be set at 60% of median wages. That would be €13.10. We are indicating to employers that this is where we would be if we had a living wage today if they could afford to pay it. It is an increase of 7.6%. It is not at the rate of inflation but it is not that far behind it. Other help is on the way, and Deputy Ó Ríordáin will see that the other help on the way in the budget will be of particular benefit to people on low incomes. When we add this help to the 7.6% it will fully protect people on the minimum wage from inflation. I agree with the Deputy's fundamental point that it is not just about pay but about how much of it people get to take home. It is also about how far that money goes. This is why we need pay rises, income tax reductions and a reduction in the cost of living in areas such as childcare and education.

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