Written answers

Tuesday, 7 November 2017

Department of Employment Affairs and Social Protection

Living Wage Introduction

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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74. To ask the Minister for Employment Affairs and Social Protection her plans to move to a policy of a living wage to ensure work pays for all those employed in view of the recent report on the prevalence of minimum wage rates among women, the young and migrant workers. [46811/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The Low Pay Commission was established 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 regarding the rate, ensuring that any recommendations are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.

EUROSTAT data indicates that the minimum wage in Ireland is the second highest in the EU, after Luxembourg. In terms of purchasing power standards, Ireland’s minimum wage currently ranks in 6th position. I have recently signed an Order increasing the national minimum wage to €9.55, with effect from 1 January next, on foot of the Commission’s most recent recommendation.

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 move away from current policy in relation to the National Minimum Wage.

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