Ivana Bacik (Dublin Bay South, Labour)
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195. To ask the Minister for Enterprise, Trade and Employment if he has read a report (details supplied); if, in view of that report, it is possible to estimate the cost of phasing out sub-minima national minimum wage rates for workers aged under twenty years; and if he will make a statement on the matter. [28110/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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As the Deputy is aware, in February 2022, the Low Pay Commission was asked by the then Tánaiste and Minister for Enterprise, Trade and Employment 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.

To inform its work, the Low Pay Commission asked the ESRI to conduct background research on this issue under the terms of the LPC-ESRI Research Partnership Agreement. This report, “Sub-minimum Wages in Ireland”, was published in November 2023.

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.

I have read this report, and the Low Pay Commission’s report and recommendations on sub-minimum rates of the National Minimum Wage. The Deputy will be aware that the Low Pay Commission has recommended the removal of all sub-minimum youth rates of the National Minimum Wage.

While these reports provide information on the incidence of sub-minimum employment, I have committed to commissioning an economic impact assessment of the Low Pay Commission’s recommendations.

The economic impact assessment will model the cost and 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.

Terms of reference for this economic impact assessment are being finalised.