Peter Burke (Longford-Westmeath, Fine Gael)

I thank the Deputy for his very important question. I acknowledge and thank the 2.8 million workers going to work today on what is International Workers' Day. I look forward to addressing the House in that respect later.

I am committed to improving the pay of low-paid workers and the Government’s track record on this is beyond question. Since 2020, the national minimum wage has increased by 33.7%, from €10.10 to today’s rate of €13.50 an hour. The Deputy will agree that this is a substantial increase, and I fully expect the national minimum wage to increase further over the coming years.

Our current rate of €13.50 an hour means that Ireland now has the second highest minimum wage in the EU, second only to Luxembourg. When adjusted for purchasing power standards, we have the fifth highest minimum wage in the EU.

In 2024, there was a significant uplift of 12%, or €1.40, in the minimum wage, and this year the minimum wage increased by 80 cent, an increase of over 6%. Both of these increases were well ahead of inflation and projected wage growth, and have brought about substantial and real wage growth for the lowest paid workers in our economy.

The Low Pay Commission has estimated that the “bite” of the minimum wage, that is, the national minimum wage as a percentage of the median wage, has increased from 50% in 2022 to 55% in 2024, calculated using the CSO’s labour force survey data, or from 54% in 2022 to 59% in 2024, using the CSO’s structure of earnings statistics data.

The Government wants to ensure that any further increases in the national minimum wage are managed in a sustainable way, and in a way that does not threaten employment or competitiveness. That is why Government has agreed to adjust the implementation timeline for the living wage to 2029. This was done as part of a suite of measures to bolster business resilience and support competitiveness during these uncertain times. This decision should be considered in the context of the recent significant increases in the minimum wage which show Government’s continuing commitment to fair wages across the economy.

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