Aodhán Ó Ríordáin (Dublin Bay North, Labour)
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65. To ask the Minister for Enterprise, Trade and Employment if he will implement an immediate increase in the minimum wage. [45109/22]

Leo Varadkar (Dublin West, Fine Gael)
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Ireland has a well-established system for setting the minimum wage, based on the recommendations of the Low Pay Commission, and this system works well.

Since its establishment in 2015, the Low Pay Commission has delivered six consecutive annual increases in the minimum wage. The national minimum wage has increased from €8.65 per hour to €10.50 per hour between 2016 and 2022, a 21.4% increase. This compares with an increase in consumer prices of 7% in the 6 years to December 2021. Even despite the high levels of inflation we have seen over the last twelve months, the minimum Wage has increased substantially in real terms over recent years.

Yesterday, I announced that the National Minimum Wage will increase by 80 cent from 10.50 euro per hour to 11.30 euro per hour, with effect from 1 January 2023. This increase is again based on the recommendation of the Low Pay Commission.

The Low Pay Commission is made up of an equal number of employer representatives, employee representatives, and independent members which helps to provide a balanced view when determining an appropriate rate for the National Minimum Wage. In addition, the establishing legislation requires the Low Pay Commission to give consideration to a range of issues when arriving at a recommendation for the appropriate National Minimum Wage rate. These issues include the cost of living, competitiveness and the likely effect that any proposed recommendation will have on future levels of employment. The Government respects the commission and its independence.

When considering the appropriate date for the implementation of an increase in the National Minimum Wage, it is important to take into the account the need to implement necessary budgetary adjustments in relation to tax and social welfare to avoid adverse consequences for minimum wage workers.