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

I am grateful to Senator Warfield for submitting this timely and important Commencement matter. Before I get into the specifics of the sub-minimum wage rate, it is important to lay out the context in which we are discussing it, with regard to the national minimum wage. We all know it has increased as part of the budget to €12.70 per hour. That will come into effect from 1 January. This represents an €1.40 increase, or 12.4%, on the current national minimum wage. This is the tenth increase to the minimum wage since 2011. It is a significant one that should not be underestimated. The increase in the national minimum wage will mean that those working under certain conditions, under the ages of 18, 19 and 20, will receive corresponding increases in their pay, as they are currently entitled by law. I will not go into the rates, as Senator Warfield has laid them out already.

The current system of sub-minimum rates is based on the recommendations of the Low Pay Commission, which last examined this issue in 2017. We are six years on now. It is important to note that many employers are already paying workers under 19 the full minimum wage and they are entitled to disregard the sub-minimum rates where they want to. Last year, the then Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Leo Varadkar, requested the Low Pay Commission to again examine the issues relating to retaining or removing the sub-minimum or youth rates and to make recommendations on the subject. The Low Pay Commission takes an evidence-based approach to its work and asked the Economic and Social Research Institute, ESRI, to conduct background research on the issue. I understand that this research report has been submitted to the commission and will be published by the ESRI early next month.

During the summer, the Low Pay Commission held a targeted stakeholder consultation on the sub-minimum rates issue, which will also inform its deliberations on this work. The commission is made up of both employer and employee representative groups, which take all matters and perspectives into consideration when making any recommendation to Government. The Low Pay Commission has indicated that it intends to submit its report and recommendations to the Minister, Deputy Coveney, before the end of the year. There has been no change to this timeline. The Low Pay Commission has been working to this timeline since it commenced this work. The Minister, Deputy Coveney, will then publish the commission’s report, while considering its contents and recommendations and the appropriate next steps.