Written answers
Wednesday, 19 February 2025
Department of Enterprise, Trade and Employment
Living Wage
Maurice Quinlivan (Limerick City, Sinn Fein)
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86. To ask the Minister for Enterprise, Trade and Employment the plans in place to move to a living wage; and if he will make a statement on the matter. [6584/25]
Peter Burke (Longford-Westmeath, Fine Gael)
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The Programme for Government includes the commitment that this Government will recognise the work of the independent Low Pay Commission, ensuring fair wages whilst also supporting the viability of small and medium-sized enterprises.
The Government is committed to ensuring a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness.
As the Deputy will be aware, in November 2022, the previous 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 the 2023 rate of €11.30 per hour.
On the 1st of January 2025, the minimum wage was increased further to €13.50. This 80 cent increase represented a 6.3% increase in the minimum wage, ahead of projected wage growth across the economy. Approximately 195,300 workers directly benefitted from this increase.
These are significant increases in the minimum wage, and they show Government’s commitment to fair and sustainable wages.
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