Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I thank Deputy Quinlivan for asking this well-timed question. I am extremely supportive of the living wage. It is part of our commitment to making work pay and supporting workers. As the Deputy correctly stated, the low-paid workers in our society are facing the same increases in the cost of living as the rest of us. They see their energy bills rising and are faced with childcare costs, rent and mortgages. We are proud to support to support these workers.

The first step towards reaching a living wage was the 80 cent increase to the national minimum wage on 1 January 2023, bringing it to €11.30 per hour. This will be followed by a €1.40 increase to the national minimum wage which was announced as part of the budget earlier this week. This significant increase will come into force on 1 January 2024 and will increase the minimum wage to €12.70 per hour.

The Low Pay Commission estimated that the €1.40 increase in the 2024 national minimum wage announced earlier this week will bring the minimum wage to 55.1% of median hourly wages. The Low Pay Commission will continue to make annual recommendations on the appropriate rate of the national minimum wage and the increases required so that by 2026 the minimum wage will reach the target of 60% of hourly median wages. The increase in the 2024 national minimum wage of €1.40, or 12.4%, is significant. Coupled with changes in income tax and the universal social charge announced in budget 2024, it shows the Government’s commitment to protecting and improving the incomes of low-paid workers.

Though the move to the living wage is a more recent decision, my party has increased the minimum wage ten times while in government. When we entered government in 2011, the minimum wage stood at €7.65 per hour. That it will become €12.70 in January 2024 is proof in the pudding that we truly believe in this. Once the 60% threshold is reached, the Low Pay Commission will assess the impact of the progression to the 60% target and then advise on the practicalities of gradually increasing the targeted threshold rate towards 66% of the hourly median wage.

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