Maurice Quinlivan (Limerick City, Sinn Fein)
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76. To ask the Minister for Enterprise, Trade and Employment if he will report on the progress of the programme for Government commitment to progress to a living wage over the lifetime of the Government; and if he will make a statement on the matter. [62053/22]

Leo Varadkar (Dublin West, Fine Gael)
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Improving terms and conditions for workers must be one of the legacies of the pandemic. Across the country thousands of minimum wage workers, regardless of what job, sector or location they work in, will benefit from the move to a living wage. In addition, many more employees will feel the benefits of knock-on increases resulting from the changes.

It's an important step we're taking towards eradicating low-wage employment for all workers and it will be implemented gradually over a four-year period. Once it is successfully in place, the Low Pay Commission will investigate if we can increase the living wage further to reach 66% of hourly median earnings.

Extensive research and consultation took place - including with employer and worker representative groups, unions and the public - in order to ensure we introduce the living wage in a way which will benefit workers whilst also being manageable for businesses. It’s important to get the balance right.

In their recommendations, the Low Pay Commission proposed the adoption of a fixed threshold approach for the calculation of a living wage, as opposed to a Minimum Essential Standard of Living or “basket of goods” approach, and setting the fixed threshold at 60 per cent of the median wage in the economy.

It will be introduced over a four-year period and will be in place by 2026. The agreed hourly National Minimum Wage rate of €11.30 from 1 January 2023 is in line with this transition and can be considered the first year of a proposed four-year path towards reaching a living wage of 60 per cent of the median wage.