Written answers

Wednesday, 24 October 2007

Department of Enterprise, Trade and Employment

National Minimum Wage

8:00 pm

Photo of Shane McEnteeShane McEntee (Meath East, Fine Gael)
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Question 101: To ask the Minister for Enterprise, Trade and Employment his views on the impact the most recent minimum wage increase has had on employment, small business and competitiveness; if his Department has carried out a study of same; and if he will make a statement on the matter. [25351/07]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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In November 2006 the Labour Court recommended that the Minimum Wage should be increased to €8.30 per hour from 1 January 2007 and to €8.65 from 1 July, 2007.

The Minister for Labour Affairs decided that, having regard to the fact that it had been 20 months since the minimum wage had last been increased and having regard to the period for which the new rates could be expected to remain in force, the increases would provide for a reasonable annual rate of increase over the period 2006 to 2008 as a whole. The increases were given effect by statutory Order in December 2006.

In September 2007 the Department of Enterprise, Trade and Employment invited tenders for the conduct of a national survey of firms to obtain data on the ongoing impact of the National Minimum Wage. The principal objective of this survey will be to deliver data that allow for the continued monitoring of trends in relation to the minimum wage and related matters.

Previous surveys (reports of which are available on the website of the Department) have provided data on such matters as the numbers of people on the minimum wage, the sectors in which they work, how many workers on the minimum wage are working part-time/full-time, the number of men/women on the minimum wage, the age of those on the minimum wage and the country of origin of low paid workers.

The surveys have also asked respondent firms to record their perceptions of the impact of the minimum wage on employment practices and procedures in the workplace, whether or not they feel that in the absence of the minimum wage legislation they would be employing more or the same number of people and the effect of the minimum wage on prices and profit.

The Report arising out of the next survey will also be made available publicly on the website of the Department of Enterprise, Trade and Employment.

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