Written answers

Tuesday, 19 July 2016

Department of Jobs, Enterprise and Innovation

Low Pay Commission Report

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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897. To ask the Minister for Jobs, Enterprise and Innovation her plans to accept the recommendations of the Low Pay Commission on the national minimum wage that is due to report on the week of 19 July 2016; and if she will make a statement on the matter. [22715/16]

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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898. To ask the Minister for Jobs, Enterprise and Innovation when the Low Pay Commission will report back on its examination of the prevalence of low pay among young persons and women in the workforce; if she expects new legislation or regulations to arise on foot of these investigations; and if she will make a statement on the matter. [22716/16]

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I propose to take Questions Nos. 897 and 898 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 today. Any recommendation made by the Commission will be considered by Government in the context of Budget 2017.

As well as making recommendations regarding the national minimum hourly rate of pay, by 19 July, the Low Pay Commission, which is independent in the performance of its functions, has also been requested 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 was due by the end of February 2016, but an extension to the end of October 2016 was sought and has been granted to the Commission.

The Commission has also been requested to examine the issues surrounding the preponderance of women on the NMW and report its views in relation to the underlying causes. This report is also due by end October 2016.

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