Written answers

Tuesday, 20 January 2015

Department of Jobs, Enterprise and Innovation

National Minimum Wage

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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275. To ask the Minister for Jobs, Enterprise and Innovation his plans to increase the national minimum wage during the lifetime of this Government. [2683/15]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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277. To ask the Minister for Jobs, Enterprise and Innovation if he will limit the remit of the low pay commission to considering the national minimum wage. [2760/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 275 and 277 together.

The Statement of Government Priorities 2014–2016 includes a commitment to establish a Low Pay Commission on a statutory basis as an independent body to make annual recommendations to the Government about the appropriate level of the minimum wage and related matters.

To this end, on 14 January last the Government approved the General Scheme of a Bill to provide for the establishment, composition, functioning and terms of reference of the Low Pay Commission.

With a view to ensuring that the Low Pay Commission is in a position to carry out its functions as soon as possible, Ged Nash TD, the Minister for Business and Employment will, in the coming weeks, establish the Low Pay Commission on an interim administrative basis. It is intended that the interim membership will constitute the Commission when it is established on a statutory basis.

The legislation to provide for the establishment of the Low Pay Commission on a statutory basis will be published as soon as possible with a view to its enactment in early 2015.

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister on the national minimum wage. The Commission will be required to make recommendations that are evidence-based and will be required also to analyse relevant data and to monitor trends. It is proposed that the Minister will act within three months of receipt of a recommendation from the Commission in relation to the National Minimum Wage. I should not pre-empt what the recommendations will be.

Alongside examining the National Minimum Wage, the Low Pay Commission will also be tasked with examining matters related generally to the functions of the Commission under the Act. This work programme will be agreed by Government and presented to the Commission no later than two months after the start of each year.

The Commission will also be required every 3 years to report generally on the operation of the National Minimum Wage Act, including in particular on the impact of orders made under this Act on low pay, income distribution and employment costs.

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