Minimum wage and living wage
Brendan Howlin argued the minimum wage had not risen quickly enough and should track the living wage. The Taoiseach defended the Low Pay Commission system, noted Labour had supported it in government, and said employer views must be considered when setting wages.
I will start where the Taoiseach ended. The programme for Government includes a commitment to reduce poverty levels by supporting an increase in the minimum wage to €10.50 per hour. Despite the House having passed a Labour Party motion 18 months ago to increase the national minimum wage incrementally until it was pegged at 60% of median earnings, we have seen a 40 cent increase in the minimum wage with the next mite of it not to be paid until January. Meanwhile, the living wage itself continues to be revised upwards in light of continuing housing prices, in particular, and now stands at €11.70 an hour. Leaving aside this recommendation for a living wage of €11.70, when will the Government target of €10.50 an hour be reached?
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The national minimum wage is set by the Government on the advice of the Low Pay Commission. The Deputy will be aware that this legislation was what the Labour Party-----
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-----supported and very much drove forward in the previous Government. Having set up that system, I am sure the Deputy would not want us to move to a different one.
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The terms of reference should be tweaked, however.
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When the Low Pay Commission calculates the recommended national minimum wage, it takes into account several factors, including the views of the employers and the impact it might have on employment. Those who calculate the living wage do not take into account the views of employers. Any reasonable person in this House will agree that when setting wages, one should take into account the views of employers as to what impact it might have on employment levels. There is nothing lower than no wage at all.