Simon Coveney (Cork South Central, Fine Gael)
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The Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed by 15th November 2024. The Directive aims to ensure that workers in the Union are protected by adequate minimum wages allowing for a decent living wherever they work.

The Directive includes three sets of measures:

1. One of the goals of the Directive is to increase the number of workers who are covered by collective bargaining on wage setting. It will require Ireland to develop an action plan to enhance collective bargaining coverage by the end of 2025.

2. To ensure minimum wages are set at adequate levels, the Directive also requires countries with statutory minimum wages (as in Ireland) to put in place clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy, and to involve social partners in the regular and timely updates of minimum wages.

3. The Directive provides for improved enforcement and monitoring of the minimum wage protection established in each country. The Directive introduces reporting by Member States on its minimum wage protection data to the European Commission.

The Directive will be transposed into Irish law. My officials are assessing our obligations under the Directive and are considering transposition options, including through legal advice.

The directive does not seek to establish the level of pay or set a harmonised minimum wage. For early years educators, with effect from 15 September 2022, two new Employment Regulation Orders (EROs) were commenced which provide for minimum hourly rates of pay and other conditions of employment for various roles in the Early Learning and Childcare Sector. An increased allocation for the second year applies from September 2023 to August 2024. This was the first time an ERO had set minimum wages for roles in this sector and more than 70% of approximately 27,000 staff working in the sector received a pay increase following the agreement. The minimum rates set out in the EROs are available on the Workplace Relations Commission website.

As the minimum wage is set by primary law, this takes precedence over the rates in an ERO, which is set by Ministerial Order. Therefore, should the minimum wage rate increase to a point that is higher than the rate provided for in an ERO, then the higher minimum wage rate will come into force.