Paul Murphy (Dublin South West, Solidarity)
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23. To ask the Minister for Enterprise, Trade and Employment if he will support increasing the national minimum wage to €17 per hour to address the cost of living crisis; and if he will make a statement on the matter. [50126/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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The Government is of course aware of the very real concerns about the cost of living. At the same time, we have seen very significant increases in the national minimum wage in recent years (6% this year and 12% the year before).

Minimum wage employees work in a range of important jobs across Ireland, and I am committed to ensuring that they receive fair and sustainable wages.

Ireland currently has one of the highest nominal minimum wage rates in the world at €13.50. This is the second highest rate in the EU, surpassed only by Luxembourg.

The Low Pay Commission's report and recommendations for the 2026 National Minimum Wage were submitted to the me in July. They will be brought to Government for consideration as part of the budget, as is standard practice.

To move to a €17 minimum wage in one step would involve an increase of €3.50 or 26%. To put that in context, the latest set of forecasts from the Department of Finance have inflation at 2.1% next year with wage growth at 4.0%. To propose increasing wages at magnitudes of 6 or 7 times the prevailing rate is clearly out of step with economic reality.

We aware of employers’ concerns about the high cost of doing business across some of our vulnerable sectors such as hospitality, food services and retail. We want to protect the viability of these businesses and the livelihoods of those who are employed in them, while also helping low paid workers.

It is better to set the minimum wage in a way that reflects the prevailing economic conditions. The minimum wage should increase as the economy improves, as it has over the last few years.

The National Minimum Wage has increased substantially under this Government, with a 33% increase between 2020 and 2025.

Recent increases in the National Minimum Wage were ahead of inflation and projected wage growth and have brought about significant and real wage growth for the lowest paid workers in our economy.

The decision on the minimum wage for 2026 has not yet been taken and there is much to consider and reflect upon. That said, I expect that the National Minimum Wage will increase further over the coming years, but it is important that we manage these increases in a way that does not damage employment, income levels and competitiveness.