Tánaiste warns that state will not fund living wage top-up

A State top-up to bring all workers up to the living wage would not be advisable and would be very costly for taxpayers, the Tánaiste has warned.

The Labour party are encouraging private companies to pay workers the living wage and have promised that if the party are re-elected to Government, they will ensure that the State and all public bodies become living wage employers.

However, yesterday Joan Burton said that she did not favour a State-funded top-up to low-paid workers as it could hike up taxes for ordinary workers.

Ms Burton said: “As we secure our economic recovery, we want to be sure that the jobs we have and the jobs we are helping to create are decent, sustainable jobs where workers earn enough money to look after themselves and their families. The Living Wage Campaign does precisely that and I am very pleased that SSE is now joining the growing number of employers here who believe that every one of its staff should share in our hard-won recovery.”

The Living Wage is an independently assessed and measured rate of income considered necessary to meet basic needs, such as housing, food, clothing, transport and healthcare. The Living Wage Technical Group in Ireland set the rate at €11.50 per hour.

Minister for Business and Employment, Ged Nash said: “The voluntary Living Wage campaign is gaining momentum and I would encourage other progressive employers to follow the lead SSE has demonstrated.”

He agreed that supplementing the minimum wage, which will rise from €8.65 an hour to €9.15 an hour in January, would be an expensive move. Mr Nash added that he did not want a situation where taxpayers would bridge the pay gap which would mean large companies get off the hook in terms of paying the living wage.

Both ministers were at SSE headquarters in Dublin after the company announced it is to become a living wage employer. This move guarantees that all of its 270 employees will earn a living wage of at least €11.50 per hour from Januray — meaning a pay increase for 61 staff members.

SSE is the first corporate body in Ireland to voluntarily adopt the Living Wage, as well as the first energy company to do so.