Simon Coveney (Cork South Central, Fine Gael)
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Currently, the minimum wage for those aged under 20 is less than the minimum wage for those aged 20 and over. The minimum wage for those aged 19 is 90% of the prevailing rate, for those aged 18 it is 80% and for those aged 17 and under it is 70%.

As the Deputy will be aware, in 2022, the then Tánaiste and Minister for Enterprise, Trade and Employment requested the Low Pay Commission to again examine the issues relating to retaining or removing these sub-minimum, or youth rates of the National Minimum Wage and to make recommendations on the subject.

The Low Pay Commission takes an evidence-based approach to its work and asked the Economic and Social Research Institute, ESRI, to conduct background research on the issue, under the terms of the Low Pay Commission and ESRI Research Partnership Agreement. This ESRI report “Sub-minimum wages in Ireland” was published in November.

The study examines the incidence and the characteristics of employees that are paid below the full national minimum wage rate. It provides evidence on the number of employees, and the type of employees, that could be impacted by any changes made to the sub-minimum youth rates.

During the summer the Low Pay Commission also held a targeted consultation with employer, employee and youth stakeholders on youth rates.

The ESRI research report and the submissions made by stakeholders have informed the Low Pay Commission’s deliberations on this important issue.

The Low Pay Commission is currently finalising their report and recommendations on subminimum youth rates of the National Minimum Wage. I expect to receive this report over the coming weeks.

I will bring a proposal to Government on the future of subminimum youth rates following consideration of this report.