Cathal Crowe (Clare, Fianna Fail)
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44. To ask the Minister for Enterprise, Trade and Employment when he expects to act on the Low Pay Commission recommendation that sub-minimum youth rates of the national minimum wage be abolished; if he will also take into account some of the financial hardships (details supplied) that are currently being faced by business owners in the retail and hospitality sectors; and if he will make a statement on the matter. [27488/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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In 2022, the Low Pay Commission was asked to examine the issues around retaining or removing the sub-minimum youth rates of the National Minimum Wage and to make recommendations on the subject.

The Low Pay Commission’s report on these sub-minimum rates was published earlier this month.

The Low Pay Commission has recommended the removal of all sub-minimum youth rates of the National Minimum Wage.

The Commission highlighted in its report that this is a complex issue. They have said Government will need to give their findings and recommendations detailed consideration and deliberation, and they highlighted the need for further legal advice and consultation.

I have committed to commissioning an economic impact assessment of the recommendations. Terms of reference for this study are being considered.

The use of sub-minimum youth rates is largely concentrated in the accommodation, food, and retail sectors. I know that these are sectors that have reported facing considerable cost pressures.

The economic impact assessment will model the impact of making changes to youth rates on firms of different sizes and in different sectors. It will also consider the likely changes to the National Minimum Wage given the Government’s decision to progress to a National Living Wage set at 60 per cent of the median wage.

I will also seek legal advice on the recommendations of the Commission’s report.

The Low Pay Commission’s report acknowledged that workers aged under 18 have legal restrictions on the work they may do. This point will be further considered in the aforementioned request for legal advice.

Government will make a decision on this important issue when all this information is available to us.

I have already confirmed that any Government decisions on the Commission’s recommendations will be made with recourse to the SME test, which was a key element of my 15-point business supports package.