IBEC welcomes minimum-wage reduction

IBEC, the group that represents Irish business, has said the Government's move to reduce the national minimum wage is necessary to support economic recovery and create employment.

The new national minimum wage rate of €7.65 an hour is to take effect on February 1 after Minister for Enterprise, Trade and Innovation Batt O’Keeffe signed the new order into law today.

IBEC said that regaining competitiveness and getting Irish labour costs back into line with similar economies is central to economic recovery.

IBEC director Brendan McGinty said the new rate was still significantly higher than the UK rate and will be the fifth highest in the EU.