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Dáil
‹ Questions on Promised Legislation

Minimum wage and living wage

Summary

Deputies Mary Lou McDonald and Brendan Howlin challenge the gap between the living wage and the national minimum wage and criticise the Government's pace on low pay. The Taoiseach says no legislation is promised, but the statutory minimum wage will rise further and is set by the Low Pay Commission.

The living wage technical group has stated this morning that the living wage in Ireland has risen to €11.70, a rise of 20 cent, as a result of the increased cost of living facing citizens and workers. As the Taoiseach knows, the living wage is evidence-based and the rate of pay a full-time worker needs in order that he or she can experience a socially acceptable standard of living, certainly not a gold-plated standard of living but a threshold of decency. The Taoiseach will be aware that the rate of €11.70 is well in excess of the current national minimum wage which stands at €9.25, the rate earned by many who rise early in the morning and go out to work. The programme for Government contains a commitment to increase the national minimum wage to €10.50 in the next five years. This figure still falls well short of what has been independently judged to be a minimum living wage. In the programme for Government the Government states the reason for raising the national minimum wage is to reduce poverty levels. Given that the cost of living is outstripping any such increase, last year's increase in particular, will the Taoiseach accept that the Government needs to be more ambitious in its targets? Will he accept that it needs to adopt a policy of payment of the living wage to workers in order that a socially acceptable standard of living will be afforded to workers, citizens and their families?

Comment on this

It has been over a year since the House passed a Labour Party motion to increase incrementally the national minimum wage until it is pegged at 60% of median earnings. Despite that commitment and the commitment outlined by Deputy Mary Lou McDonald in the programme for Government, so far the Government has only managed to increase the national minimum wage by 10 cent. It has refused to amend the terms of reference of the Low Pay Commission that would make even reaching this low target a possibility. This morning the living wage technical group published its 2017 report which recommended a living wage of €11.70 per hour. Given the continuing rise in the cost of housing instanced, this will come as little surprise to anybody. Leaving aside the recommendation which I do not believe the Government will embrace, there is a formal resolution of the Dáil. Will the Taoiseach tell us in plain terms when and how either the resolution of the Dáil of last year that we work towards 60% of median earnings or the commitment contained in the programme for Government to at least reach €10.50 per hour will be achieved?

Comment on this
Leo Varadkar The Taoiseach Fine Gael

No legislation has been promised in this area. There is a programme for Government commitment to increase the statutory minimum wage. In the past five years the national minimum wage has been increased on three occasions. It has been increased by about 20% during that period, at a higher rate than the increase in wages generally. I am sure it will be increased further into the future.

The minimum wage is determined on a statutory basis by the Low Pay Commission and the Low Pay Commission considers all the empirical evidence, including input from unions, from employers, from NGOs and from advocacy groups, and takes into account a number of different things. Those include not just the cost of living, but also the potential impact on employment and displacement. As I understand it, the living wage technical group is separate. It is non-statutory and it is comprised of a number of groups, including trade unions and community and voluntary sector advocacy groups. It is based on certain assumptions-----

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Academics and experts.

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Leo Varadkar The Taoiseach Fine Gael

-----but does not include employers or independent economists in the group making that assessment.

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Is the Taoiseach gainsaying the finding of-----

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

I call Deputy Bríd Smith.

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