Report on low pay for Cabinet

The Government is expected to receive recommendations next week that the minimum wage be increased to close to €10.

The low pay commission is scheduled to produce its report, which will be considered by the Government as it prepares its plans for October’s budget.

The Cabinet will review the commission report at its weekly meeting on Tuesday.

Commitments to increase the minimum wage from the current rate of €9.15 to €10.50 by the year 2021 have already been made in the programme for government.

Jobs Minister Mary Mitchell O’Connor will bring the commission’s findings to government. The report is also expected to make recommendations about how to address concerns about the large amounts of women on the minimum wage.

Levels of pay for some women is considered low, particularly for some working in childcare, in shops, and as cleaners.

The commission in early 2016 sought submissions from interested parties on the national minimum wage and the underlying reasons for the preponderance of women on the rate.

Ms Mitchell O’Connor has said that 65% of people on the minimum wage are women.

The decision and level at which basic rates of pay should be increased will be dictated by the level of money available for the budget. Finance Minister Michael Noonan has said up to €1bn extra is available to spend between services and tax cuts.

The Government says it wants to increase the rate over the next five years in a bid to reduce “poverty levels” for the 124,000 workers on it.

Unions want the low pay commission to recommend it boosts the rate beyond the government target due to the economic recovery and a hike in the minimum rate in Britain.

But increasing the minimum wage will not help households trapped in poverty, the ESRI has warned.

Campaign groups and Opposition parties have called for the minimum wage to be increased to €11.50 an hour.

More on this topic

Minimum wage increases 30c from todayMinimum wage increases 30c from today

Minimum wage increase led to some workers see temporary reduction in hours Minimum wage increase led to some workers see temporary reduction in hours

Many EU workers not getting minimum wage boostMany EU workers not getting minimum wage boost

Almost one in 10 on minimum wageAlmost one in 10 on minimum wage


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