Written answers

Thursday, 29 June 2017

Department of Jobs, Enterprise and Innovation

National Minimum Wage

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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58. To ask the Minister for Jobs, Enterprise and Innovation her plans to raise the minimum wage (details supplied). [30648/17]

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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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.

It is important that Ireland’s statutory National Minimum Wage and the Living Wage concept are not conflated. The Living Wage is a voluntary societal initiative centred on the social, business and economic case to ensure that, wherever it can be afforded, employers will pay a rate of pay that provides an income that is sufficient to meet an individual’s basic needs, such as housing, food, clothing, transport and healthcare.  The Living Wage is voluntary and has no legislative basis and is therefore not a statutory entitlement. It is different to the National Minimum Wage which is a statutory entitlement and has a legislative basis.

I have no plans to bring forward proposals outside of the work of the Low Pay Commission.

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