Written answers

Tuesday, 12 July 2016

Department of Jobs, Enterprise and Innovation

Low Pay Commission Report

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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787. To ask the Minister for Jobs, Enterprise and Innovation her plans to implement the commitment in the summer economic statement to increase the minimum wage to €10.50 an hour over the next five years; the status of the Low Pay Commission following such a commitment; and if she will make a statement on the matter. [20514/16]

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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788. To ask the Minister for Jobs, Enterprise and Innovation the number of times the Low Pay Commission has met since its establishment; the frequency with which it has reported to her; the recommendations, if any, it has made; and if she will make a statement on the matter. [20515/16]

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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789. To ask the Minister for Jobs, Enterprise and Innovation the cost of establishing the Low Pay Commission; the yearly cost of running the commission; and if she will make a statement on the matter. [20516/16]

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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790. To ask the Minister for Jobs, Enterprise and Innovation the salaries, allowances and expenses paid to members of the Low Pay Commission since its establishment; and if she will make a statement on the matter. [20517/16]

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I propose to take Questions Nos. 787 to 790, inclusive, together.

The Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate, ensuring that all decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.

The Commission submitted its first report in July 2015. Its recommendation to increase the minimum wage from €8.65 to €9.15 per hour was accepted by Government and the increase came into effect on 1 January last.

The Commission’s second report on the national minimum wage is due to be submitted to the Minister by 19 July 2016.

The 2015 Act allows the Minister to request the Commission 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. Such request must be made to the Commission by the end of February each year. This new provision was invoked, in order to obtain a better understanding of the impact of the national minimum wage on younger people. The Commission has been asked to examine the appropriateness of the sub-minima rates as currently provided for in the National Minimum Wage Acts with regard in particular to their impact on youth unemployment rates and participation in education. This report is due by the end of October 2016. This new provision has also been used to ask the Commission to report on the preponderance of women on the national minimum wage. In order to obtain a better understanding of the composition and profile of this group and the underlying causality, the Commission was requested to examine this issue in more detail and report its views as to the underlying reason for this position and make any recommendations it considers appropriate. This report is also due by the 31st of October this year.

The Summer Economic Statement repeats the Government's support for an increase in the minimum wage to €10.50 per hour over the next five years and put in place mechanisms that mitigate the impact on employers in order to protect lower paid jobs taking into account the recommendations of the Low Pay Commission. The independence of the Low Pay Commission is firmly established in the National Minimum Wage (Low Pay Commission) Act 2015. It can only operate within that statutory remit and make recommendations to the Minister in accordance with the criteria that are clearly and explicitly set out in the 2015 Act.

The Commission met on 7 occasions while it had interim status. Since its establishment on a statutory basis it has met on 11 occasions. Members of the Commission have also met with a range of interested parties since February 2015. 4 such meetings took place in Galway, Dublin (X2) and Monaghan.

An allocation of €500,000 was provided for the Commission in 2015, broken down on a pay (€270,000) and a non-pay (€230,000) basis. Expenditure in 2015 was €250,600 - €155,500 (pay) and €95,100 (non-pay). €474,000 has been allocated to the Commission for 2016 broken down on a pay (€244,000) and a non-pay (€230,000) basis.

Information relating to member fees and expenses to date is set out below:-

FeesExpenses
€81,937.56€11,364.03

Not all Commission members are in receipt of fees, a number of members have waived their entitlement to fees and expenses. Others are ineligible to claim fees under the ‘one person, one salary’ principle.

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