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)

The Government's commitment is to defer the decision to 2029. We will publish the data behind that shortly. It should be noted what the commission actually said on subminimum rates. It is not exactly what the Deputy quoted. It stated:

The Low Pay Commission recommends that sub-minimum wage rates for employees who are 18 and 19 years of age should be abolished no sooner than 1 January 2025.

Contrary to what the Deputy said at the very outset, I did not make any commitment to abolish the subminimum rates. It is important to be aware that approximately 5% of 19-year-olds receive subminimum rates. The majority of workers in those cohorts are above the level of the minimum wage. Critically, the increases of recent years have been ahead of wage growth in the economy and ahead of inflation. That is combined with support from the statutory sick pay scheme, an increase in the minimum wage, banning zero-hour contracts, the introduction of legislation on tips and the introduction of auto-enrolment from 1 January.

In another question, the Deputy asks about increasing the minimum wage to €17, an increase of approximately 30%, which is six times the growth rate of wages and our economy. When combined with auto-enrolment and other increases, it would leave this country without any jobs. Deputy Murphy does not have an iota of what it takes to run the enterprise economy. He does not know what it means to employ people. He does not know the value of the 2.81 million people who are going to work in our country every single day. The policies the Deputy brings forward would close down the enterprise economy.

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