Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank Deputy Nash for his kind words.

As the Deputy will be aware, in 2021 the Low Pay Commission was asked to examine the programme for Government commitment to progress to a living wage and provide recommendations on how best to achieve this commitment. The Low Pay Commission’s recommendations were received and considered and in November 2022, the Government agreed that a national living wage would be introduced and set at 60% of the hourly median wages, in line with the recommendations of the Low Pay Commission. The Government announced that this would be achieved by incremental adjustment to the national minimum wage.

The introduction of a living wage is an important step the Government is taking towards eradicating low-wage employment for all workers. The first step towards reaching a living wage was the 80 cent increase to the national minimum wage from 1 January 2023, to €11.30 per hour. This was followed with the significant 12.4% increase of €1.40 to the national minimum wage, which came into force on 1 January 2024 and increased the minimum wage to €12.70 per hour. The Low Pay Commission has estimated that the minimum wage in 2022 was 50.9% of the median hourly wage, increasing to 51.8% in 2023. The Commission estimates that the €1.40 increase in the 2024 national minimum wage brought 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 in order that by 2026, the minimum wage will reach the target of 60% of hourly median wages. Its recommendations on the 2025 national minimum wage are due in July.

The Government is on track with the implementation of the living wage but it is also important to acknowledge the challenges the enterprise sector has faced over the last number of years, and I am aware of the concerns of businesses as they deal with the rising cost of doing business. I am bringing forward a range of packages to help small businesses in adjusting to the increased costs of the proposed measures to improve working conditions in Ireland and to help improve their cost effectiveness.

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