Mick Barry (Cork North Central, Anti-Austerity Alliance)
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949. To ask the Minister for Jobs, Enterprise and Innovation her plans to respond to the recommendation of the Low Pay Commission that the minimum wage be raised by 10 cent per hour; when Dáil Éireann will vote on the recommendation; and if she will make a statement on the matter. [27306/16]

Pat Breen (Clare, Fine Gael)
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The Low Pay Commission was established by Government on a statutory basis in July 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 in respect of the rate, ensuring that all its decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness. As you are aware, the current national minimum hourly rate of pay for an adult worker is €9.15. This rate came into effect on January 1st last following Government acceptance of the Low Pay Commission’s first recommendation of July 2015 to increase the rate from €8.65 per hour. As well as accepting the recommendation, the Government adjusted the PRSI system in Budget 2016 to ensure that the benefit of the increase was not lost to the employee and that the effect of the increase to €9.15 per hour on employer’s PRSI liability was mitigated.

The Commission’s second report which my colleague Minister Mitchell-O’Connor submitted to Cabinet on July 19th recommends a rate of €9.25 as the national minimum hourly rate. The recommendation will be considered by the Government in the context of the 2017 budgetary process.

In accordance with the National Minimum Wage Acts 2000 and 2015 the Minister is given three months from the date of receipt of a recommendation to declare, by Order a national minimum hourly rate of pay or decline to move such an Order. Any Order made must be laid before each House of the Oireachtas.