Tánaiste Announces Increase in National Minimum Wageto £5 Per Hour in October 2002 Government Committed to Taking Those on the Minimum WageOut of the Tax Net - Harney

Mary Harney, Tánaiste and Minister for Enterprise, Trade and Employment today (Thursday 6th July, 2000) announced that the Government has approved an increase in the national minimum wage from its current rate of £4.40 an hour to £5.00 an hour from October 2002.

The Tánaiste has signed an order increasing the national minimum hourly rate of pay to £4.70 from 1 July, 2001 and to £5.00 from 1 October, 2002. The increases were recommended as part of the pay agreement in the Programme for Prosperity and Fairness.

"The national minimum wage has, and continues to have, a significant impact on the earnings of many thousands of low paid workers, mainly women and young people. Inspections carried out to date by the Labour Inspectorate of the Department of Enterprise, Trade and Employment have shown a high level of compliance with the provisions of the National Minimum Wage Act," she said.

The Tánaiste said that the Labour Inspectorate of her Department would intensify its inspections of employers for compliance with the national minimum wage legislation.

"The experience to date of the introduction of the national minimum wage has been positive and encouraging. It is my wish and that of the Government to eventually remove all employees earning the national minimum wage from the tax net to provide substantial increases in take-home pay for lower paid workers," she added.