Rise in National Minimum Wage Proposed at 65 Cents
Ireland's National Minimum Wage Set to Increase
Ireland is set to see an increase in its national minimum wage, with the rate proposed to rise by 65 cent, bringing it to €14.15 per hour. This increase, subject to government approval, would result in a weekly pay rise of approximately €25 for workers on the current minimum wage of €13.50, doing a 39-hour week.
The Economic and Social Research Institute has suggested that this increase could lead to some cuts in the total number of hours being worked by those in receipt of the minimum wage. However, the council believes that this increase would help businesses attract and retain talent.
Over the past decade, the Minimum Wage Commission has been the key organization advising the government on increasing the national minimum wage to prevent poverty in full-time jobs. Both sides are represented on the Low Pay Commission, which makes the recommendations. The commission's recommendation aligns with the Low Pay Commission's advice.
In recent years, employers in the hospitality and retail sectors have been critical of the scale of the increases approved. They argue that increases in other costs, including energy and food, have meant the lowest paid members of the workforce have had to cope with increases to outgoings that have often been greater than headline inflation rates would have suggested.
Approximately 200,000 people in Ireland earn the minimum wage, with the group disproportionately composed of women, younger workers, and people with disabilities. Thousands more whose pay is linked, often informally, to the national minimum wage are also affected by the rate change.
The increase in 2021 was regarded as a significant step towards the target of transitioning to a living wage by 2026. A year earlier, the national minimum wage increased by €1.40, or 12.4%. The National Youth Council of Ireland has urged the Government to abolish sub-minimum rates in the forthcoming budget, arguing it would end age-based discrimination and support decent work.
Trade unions argue that the increase in the national minimum wage is necessary to combat the rising cost of living. They point out that many minimum wage workers are employed in the retail, hospitality, and service sectors, where wages have historically been lower.
The increase in the national minimum wage is part of a broader effort to address income inequality and improve the standard of living for Ireland's lowest-paid workers. The government will make a final decision on the increase in the coming months.
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