Written answers

Wednesday, 25 November 2015

Department of Jobs, Enterprise and Innovation

Low Pay Commission Remit

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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91. To ask the Minister for Jobs, Enterprise and Innovation the status of his recent decision to ask the Low Pay Commission to review the impact of the minimum wage on young persons and women; the terms of reference for this review; when he expects to receive its findings; and if he will make a statement on the matter. [41948/15]

Photo of Gerald NashGerald 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 Report submitted to me on July 17 recommends 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.

The increase will come into effect on 1 January 2016.

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 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. I have asked the Commission to report back to me on this issue by end February 2016.

Secondly, given the preponderance of women on the national minimum wage, and in order to obtain a better understanding of the composition and profile of this group and the underlying causality, I also asked the Commission to examine this issue and report its views as to the underlying reasons for this position and make any recommendations it considers appropriate. The Commissions’ Report on this aspect of my request is due by end October 2016.

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