Following a recommendation from the Low Pay Commission, the government have welcomed proposals to increase the National Minimum Wage by 30c per hour as and from January 2018.
The principal function of the Low Pay Commission is to examine and make recommendations to government without creating significant adverse consequences for employment or competitiveness.
However, if employees are in receipt of food and/or accommodation (known as board & lodgings) from an employer, e.g. au pairs and hotel employees, this may be taken into account, when calculating any new minimum wage increase.
It is estimated that some 120,000 workers should benefit from this rise; increasing the minimum wage to €9.55 per hour or approximately a €12 increase for a full 40 hour working week.
Seen by low paid workers as a small step in the right direction; this pay augmentation marks the fourth increase in the minimum wage since 2011, and a further step towards a commitment in the Programme for Government, aimed at a minimum wage of €10.50.
Recently, the ‘Living Wage’ was set at €11.70 per hour, up €0.20 on last years €11.50. The living wage therefore remains €2.15 per hour higher than the proposed national Minimum Wage, and is €1.20 higher than the commitment given to low paid staff, in the Programme for Government.
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