Áine Collins (Cork North West, Fine Gael)
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214. To ask the Minister for Jobs, Enterprise and Innovation his views on a matter (details supplied) regarding the minimum wage; and if he will make a statement on the matter. [39366/15]

Gerald Nash (Louth, Labour)
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The principal function of the Low Pay Commission is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate. The Commission is also charged with submitting a report on the matters considered when making the recommendation. The Low Pay Commission structure is designed to ensure a balanced statutory minimum pay rate that is fair and will assist low-paid and vulnerable workers.

The Report submitted to me on July 17^threcommends a rate of €9.15 as the national minimum hourly rate of pay for experienced adult workers. This automatically provides an increase for those on sub-minima rates calculated as follows:-

- For workers under 18 years, the rate is 70% of the experienced adult rate;

- For workers over 18 years, in their first year of employment, the rate is 80% of the experienced adult rate; and

- For workers over 18 years, in their second year of employment, the rate is 90% of an experienced adult rate.

The National Minimum Wage Act also provides sub-minima rates which apply to employees who are over 18 and undergoing a course of structured training or directed study that is authorised or approved of by the employer. The trainee rates provided by the Act are as follows:-

- First one-third of training course, the rate is 75% of the experienced adult rate;

- Second one-third of training course, the rate is 80% of the experienced adult rate; and

- Final one-third of training course, the rate is 90% of the experienced adult rate.

The following table sets out all the rates as they currently are and what they will be from 1^stJanuary 2016 when the increase comes into effect.

Under the National Minimum Wage Act as amended, the Commission may be requested to examine and report its views and recommendations on such matters, related generally to the functions of the Commission under the Act, as are specified in that request. In this context, in order to obtain a better understanding of the impact of the NMW on younger people, particularly young people not in employment or education, I have asked the Commission to examine the appropriateness of the sub-minima rates as currently provided for with regard, in particular, to their impact on youth unemployment rates and participation in education.

National Minimum Wage (NMW)

New hourly rates of pay, effective from 1 January 2016

*Training must be prescribed by the Minister in regulations.

Each one-third period must be no less than one month and no more than 12 months.