Louise O'Reilly (Dublin Fingal, Sinn Fein)
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53. To ask the Minister for Enterprise, Trade and Employment his views on the report of the Low Pay Commission on sub-minimum, or youth rates of the national minimum wages. [30128/24]

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 conducted an in-depth review of sub-minimum youth rates, and informed by stakeholder consultation and background research from ESRI on the incidence of sub-minimum rates, developed their recommendations on these rates.

I published the Low Pay Commission’s report on sub-minimum youth rates of the National Minimum Wage last 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 on the matter.

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

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 Low Pay Commission’s recommendations.

Government will make a decision on this important issue the results of the economic impact assessment and the legal advice are available to us.

In the meantime, it’s important to remember that the current system of youth rates is based on a percentage of the full minimum wage; when the minimum wage increases, these sub-minimum rates also increase, with young people in receipt of these rates seeing a commensurate increase in their wages.