Written answers

Tuesday, 17 May 2016

Department of Jobs, Enterprise and Innovation

National Minimum Wage

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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1183. To ask the Minister for Jobs, Enterprise and Innovation if she is aware that the allowance for board and lodgings for domestic workers has not been altered since minimum wage legislation was first introduced; if and when she will change these provisions; and if she will make a statement on the matter. [9934/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Domestic workers, sometimes described as “au pairs”, “nannies” or “child-minders” are not exempted or treated as separate categories of workers under Irish employment law. Ireland’s body of employment rights legislation protects all employees who are legally employed on an employer-employee basis, regardless of what title is given to them. Therefore, once it is clear that a person is working under a contract of employment (written or verbal), on a full-time or part-time basis, that person has the same protection under employment law as other employees, including entitlement to the national minimum wage. The National Minimum Wage Act 2000 defines a contract of employment as a contract of service or apprenticeship, or any other contract whereby an individual agrees with another person to do or perform personally any work or service for that person. All employers, including those in private homes, carry the same obligations in relation to compliance with employment law.

Under the National Minimum Wage Act 2000, certain reckonable components may be taken into account for all workers to determine an employee’s average hourly rate.

In this context, if an employer provides an employee with full board and lodgings, or lodgings only or full board only, a monetary allowance can be included as reckonable pay. (The term ‘full board’ means an entitlement to meals during the day), as follows:

- €54.13 for board and lodgings per week, or €7.73 per day;

- €32.14 for board only per week, or €4.60 per day;

- €21.85 for lodgings only per week, or €3.14 per day.

The inclusion of this provision in the National Minimum Wage legislation was recommended by the Inter-Departmental Group on Implementation of a National Minimum Wage. It was the view of the Inter-Departmental Group that the monetary value of the allowances for the purpose of the National Minimum Wage would not be set at market value but rather would be similar to the amount provided for in Employment Regulation Orders.

The National Minimum Wage Act 2000 (National Minimum Hourly Rate of Pay) Order 2000 (SI No. 95/2000) provided for the amounts specified.

There are currently no plans to make changes to these provisions. However, I am very conscious of the passage of time since these rates were set and I will keep this in mind in my consideration of this issue over the coming weeks.

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