Dáil debates

Thursday, 25 September 2025

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Wage-setting Mechanisms

2:25 am

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)

I am not aware of making any such promise. I want to be very clear on that. The National Minimum Wage Acts allow for lower or subminimum rates of the minimum wage for employees aged 20 years and younger. Those aged less than 18 years can be paid 70% of the full minimum wage rate, while those aged 18 and 19 years can be paid 80% and 90%, respectively, of the full rate. As the Deputy is aware, the Low Pay Commission recommended the abolition of subminimum rates in March 2024. The commission highlighted in its report that this is a very complex issue. It said the Government will need to give its findings and recommendations detailed consideration and deliberation and highlighted the potential need for the Government to take its own legal advice on the matter.

It is important to acknowledge the challenges the enterprise sector has faced over the past number of years. We know that the use of subminimum youth rates is largely concentrated in the accommodation, food and retail sectors, and these sectors have reported facing considerable cost pressures. As part of the measures designed to bolster business resilience and support competitiveness, earlier this year the Government agreed to defer a decision on the subminimum rates until 2029. The decision should be considered in the context of the recent significant increases in the minimum wage which show that the Government continues to commit to fair wages for the lowest paid workers in our economy, but also in the context of the Government's introduction of a range of measures to assist workers, including a statutory sick pay scheme, the right to request remote working and other supports.

It is also important to highlight the very real progress we have made in raising the national minimum wage over recent years. Since 2020, the national minimum wage has increased by 33.7%, from €10.10 to today's rate of €13.50. In 2024, there was a significant uplift of 12%, or €1.40, in the minimum wage. This year, the minimum wage increased by 80 cent, an increase of over 6%. These increases were well ahead of inflation and projected wage growth in the economy and have brought about substantial and real wage growth for the lowest paid workers in our economy.

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