Bríd Smith (Dublin South Central, People Before Profit Alliance)
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70. To ask the Minister for Enterprise, Trade and Employment if he is planning to delay the introduction of a living wage; and if he will make a statement on the matter. [23305/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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The Government remains committed to the introduction of a living wage.

As the Deputy will be aware, in November 2022, Government announced that a national living wage would be introduced and set at 60% of hourly median wages, in line with the recommendations of the Low Pay Commission.

It was also agreed that the Low Pay Commission would continue to make annual recommendations on the appropriate rate of the National Minimum Wage, and the annual increases required in the minimum wage to ensure it reaches the target of 60% of hourly median wages.

The first step towards reaching a living wage was the 80 cent increase to the National Minimum Wage in 2023 to €11.30 per hour. This was followed by the significant increase to €12.70 per hour in January 2024. This represented an €1.40 increase, or 12.4%, on last year’s rate of €11.30 per hour.

These are significant increases in the minimum wage, and they show Government’s commitment to reaching a living wage.

The Low Pay Commission has a statutory obligation to submit its recommendation on the 2025 National Minimum Wage to me by 16^th July 2024.

Under the National Minimum Wages Acts, the Low Pay Commission is obliged to recommend a minimum wage that is “fair and sustainable” and to consider a range of criteria when making its recommendations, including employment, productivity, competitiveness and the cost of living.

The Commission is an independent, statutory body, and is made up of equal numbers of members representing employee interests, employer interests, and independent members, so I know they make balanced and considered recommendations.

I look forward to receiving the Low Pay Commission’s report and recommendations in July. Their recommendations will be considered by Government and will inform our next steps in relation to the living wage.

My Government has taken many measures to improve conditions for workers, and we are committed to progressing these. These improvements will bring wider societal benefits and will bring Ireland in line with other advanced economies. It is of course important to progress these initiatives in a way that takes account of the pressures facing business and that doesn’t threaten their viability.

Last week, Government agreed a package of supports for small and medium sized businesses aimed at assisting the SME sector. We want to ensure that sustainable, high quality employment is protected in Ireland and the SME package will help us to do that.