Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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75. To ask the Minister for Jobs, Enterprise and Innovation her plans to recommend an increase in the minimum wage in budget 2018 in view of the prevalence of low pay and lower than expected tax takes; and if she will make a statement on the matter. [23029/17]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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There is no evidence to suggest that there is a link between lower than expected tax receipts and low pay in new jobs. It is also notable that the proportion of employees reporting earnings at or below the national minimum wage has dropped very substantially, from 11.4% to 8.6%.

The Low Pay Commission was established in 2015 to examine and make recommendations annually on the national minimum wage. The aim is to ensure that the national minimum wage is adjusted incrementally over time having regard to changes in earnings, productivity, overall competitiveness and the likely impact on employment and unemployment levels.

The Commission made its first recommendation in July 2015 when it recommended that the rate be increased to €9.15 per hour. That increase came into effect on 1st January 2016. The Commission’s second recommendation that the rate increase to €9.25 per hour was made in July 2016. It was subsequently accepted by Government and came into effect on 1st January last.

The Commission is currently working on its next recommendation and will report to me on the matter in July. Any recommendation the Commission makes will then be considered by Government in the context of Budget 2018.

The Programme for Partnership Government provides that the Government will rely on the annual recommendations of the Low Pay Commission. Relying on an independent body such as the Low Pay Commission is the most appropriate approach to achieving the right balance and yearly adjustment to the national minimum wage levels.