EU/IMF team agrees to minimum-wage cut reversal

Ireland is on track to meet its commitments under the €85bn IMF/EU bailout loan deal, and has secured agreement on reversing the cut to the minimum wage.

After a two-week review, the Government has been given the green light to reinstate cuts to the minimum wage, taking the rate back to €8.65.

Finance Minister Michael Noonan said the IMF-EU team were happy with the country’s progress.

“In terms of renegotiating the programme, we have done what we set out to do,” he said.

A revised memorandum of understanding agreed with the IMF, the European Commission and the European Central Bank will be formally signed off on May 15 and 16.

The Government said the restoration of the minimum wage - one of the highest rates in Europe - will be done in tandem with changes to the rates of Pay Related Social Insurance paid by employers.

Mr Noonan said a so-called jobs initiative, the Labour-Fine Gael coalition Government’s plan to reverse the unemployment crisis, will be published in May.

He also said the revised loan deal will take account of the jobs plan, a public sector spending review due in September and the massive bank restructuring plan to create two “pillar” banks announced at the end of last month.