Abolishing sub-minimum wages would have 'low' impact on labour costs, says ESRI

Chief executive of lobby group Retail Excellence Ireland Jean McCabe argued the abolition of sub-minimum wages would lead to greater youth unemployment as there would not be as many job opportunities due to higher wages

The minimum wage is currently €12.70 per hour, however legislation allows employers to pay young workers an age-based sub-minimum rate in the context of lack of experience.

The potential abolition of sub-minimum wage rates is unlikely to create a significant impact on business and their finances, according to the Economic and Social Research Institute (ESRI).

Senior researcher at the leading think tank Paul Redmond said removing the lower rate of minimum wage often paid to younger workers under 20 may impact employers in accommodation, food and retail, which have traditionally tapped the youth labour market, particularly in busy periods, more than businesses in other sectors.