Simon Coveney (Cork South Central, Fine Gael)
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In line with the recommendation of the Low Pay Commission on the 2024 National Minimum Wage, the rate will increase by €1.40 from €11.30 to €12.70 on January 1st 2024. While I am cognisant that this will represent an increased cost for business, this is a positive measure for workers. This represents a significant increase in the National Minimum Wage and is designed to increase the pay of minimum wage workers in line with the Government’s decision to introduce a National Living Wage by 2026 set at 60 per cent of the median hourly wages in the economy. It is estimated that the National Minimum Wage, relative to median wages across the whole economy, will increase from 51.8% in 2023 to 55.1% in 2024.

It is important to be clear that the Increased Cost of Business (ICOB) scheme is not designed to be an offset for increases to the minimum wage. I am not planning any scheme specific to the National Minimum Wage increase. The (ICOB) is a once-off grant and will be paid to Small and Medium sized businesses who operate from a rateable premises. It is intended to be paid at a rate of up to half the enterprise’s commercial rates bill, subject to a prescribed limit. The grant is intended to aid firms but is not intended to directly compensate for all increases in wages, or other costs, for every business. This is a grant and is not intended as a rates waiver or rebate. Firms should continue to pay their commercial rates as normal.

The technical details underpinning the scheme and the mechanism for delivering the payment are currently being developed. My officials will work together with officials from the Department of Housing, Local Government and Heritage will work together with the Local Authorities to finalise the details of the grant in the coming weeks.