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Minister Mitchell O’Connor receives the Low Pay Commissions Recommendation on the National Minimum Wage

The Low Pay Commission is recommending an increase in the national minimum wage of 10 cents per hour. In its second report a majority of the members of the Commission recommend that the appropriate rate of the national minimum wage should rise to €9.25 per hour.

The current rate of the minimum wage is €9.15. The minimum wage was last increased on 1st January 2016, following Government acceptance of the Low Pay Commission’s first recommendation, made in July 2015, that the rate increase by 50 cents an hour from €8.65.

In a report submitted to Minister for Jobs, Enterprise and Innovation, Mary Mitchell O’Connor TD, the Low Pay Commission sets out a range of data it has considered in recommending the increase. The Commission also sought submissions from interested parties and consulted directly with workers on the minimum wage and employers in relevant economic sectors. The Report relies on data available in the period up to 1 July 2016.

Minister Mitchell O’Connor said “The Low Pay Commission as a body is specifically established to assess the appropriate level of the national minimum wage (NMW). The Commission is balanced and non-political and is tasked with carrying out an evidence-based assessment in proposing an appropriate level of the NMW, taking into account issues such as impacts on job-creation and competitiveness. I brought the Commission’s report and recommendation to Government earlier today, and it will be considered in detail in the context of Budget 2017”.

Minister for Employment and Small Business, Pat Breen TD said, “I also welcome the Report and would like to thank the Commissioners for their service in producing a full and comprehensive report. I look forward as well to receiving the Reports from the Commission later in the year on the ‘Related Matters’ which they have been asked to study, namely the appropriateness of the sub-minima rates, which have not been reviewed since their introduction, and the reasons behind the preponderance of women on the NMW. 

Both Ministers expressed their full support for the independent work of the Commission both in terms of the work it undertakes on an annual basis in relation to making a recommendation on the appropriate rate for the NMW and also for the work it is undertaking on related matters. They also thanked all who had responded to the Commission’s call for submissions on the NMW, and those who had shared their experiences of employing minimum wage workers, or living on the minimum wage, in meetings with members of the Commission.

ENDS

For more information contact:

Press Office, D/Jobs, Enterprise and Innovation 01 631 2200 press.office@djei.ie

Editors’ Notes:

The Low Pay Commission Report is available at www.lowpaycommission.ie 

The membership of the Low Pay Commission is:

Dr Donal de Buitléir – Chairperson - Director of PublicPolicy.ie

Vincent Jennings – CEO Convenience Stores and Newsagents Association

Patricia King - General Secretary of ICTU

Gerry Light - Assistant General Secretary, Mandate Trade Union

Caroline McEnery Director - The HR Suite; HR & Business Solutions

Edel McGinley - Director, Migrant Rights Centre Ireland

Mary Mosse – Former lecturer in Economics, School of Business, Waterford Institute of Technology

Tom Noonan - Chief Executive, The Maxol Group, (President of Ibec (2008–2010))

Prof Donal O’Neill - Dept. of Economics, Finance & Accountancy, NUI, Maynooth

The Commissioners examined a range of social, economic and labour market issues in considering the appropriate rate of the national minimum wage, including:

  • the changes in earnings since the minimum wage was last increased
  • the unemployment and employment rates generally
  • the expected impact of a change to the minimum wage on employment, the cost of living and national competitiveness
  • changes in income distribution and
  • currency exchange rates.

 

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