National Minimum Wage


miniwage

Ireland’s National Minimum Wage in 2022 is €10.50 per hour for people aged 20 years and older; €9.45 for people aged 19 years; €8.40 for someone who is 18 years of age; and €7.35 for someone aged under 18 years. On the website ROI Living Wage, the estimated Living Wage for 2021/2022 is €12.90 per hour. The Living Wage is described as “a wage which makes possible a minimum acceptable standard of living. It is evidence based and grounded in social consensus.”

According to the Central Statistics Office, 7.7% or 151,000 people were on the National Minimum Wage or less in Quarter 3 2020. At that stage, according to the International Labour Organisation’s definition of employment, 1,968,900 people were classified as employed.

The largest age group earning NMW or less were people aged 15-24 years (48%); 44% had higher secondary; 31.5% lived in households with three or more adults and no children under 18 years; 26% lived in other households with children under 18 years; 56% were working part-time; and 57% were female.

In March 2022, the Irish National Organisation of the Unemployed (INOU) made a submission to Low Pay Commission (LPC) on Ireland’s National Minimum Wage for 2023. The organisation is strongly of the view that access to decent employment is critical for people who are unemployed, it facilitates their ability to achieve economic independence and participate more fully in Irish society.  

While welfare-to-work supports and services are critical to support unemployed people and others reliant on a social welfare payment to secure a decent job, and in-work supports are vital for people who are struggling to survive in low paid employment, it is absolutely essential that the Low Pay Commission play their part in addressing in-work poverty.

In the Programme for Government, Our Shared Future, the Government noted that “The Low Pay Commission will be instrumental in ensuring that those who are in low-paid employment are valued. We will be guided by the recommendations of the Low Pay Commission with regard to any future changes in the minimum wage.” (p75)

According to the Central Statistics Office (CSO), the Consumer Price Index rose by 7% between April 2021 and April 2022, a figure not seen since November 2000. An increase in the cost of energy; higher rents and mortgage interest repayments; price increases in staples like meat, bread & cereals and milk, cheese & eggs were amongst the contributory factors.  

Given the rising cost of living, the on-going challenges facing people on low income, the Government’s commitment in Our Shared Future to “Progress to a living wage over the lifetime of the Government” (p74),a serious increase in Ireland’s National Minimum Wage in 2023 must be realised. To that end it is vital that over the coming year considerable movement is made to bring Ireland’s National Minimum Wage up closer to the Living Wage.

 The full submission is linked here.