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Minister Nash encourages interested parties to make submissions to Low Pay Commission on new round of work

4 December 2015

Statement by Ged Nash TD
Spokesperson on Finance, Public Expenditure and Reform

LPC examining preponderance of women on minimum wage, the appropriateness of sub-minima rates for young people and the rate of the National Minimum Wage

The Minister for Business and Employment, Ged Nash TD, is encouraging those with an interest in the National Minimum Wage to make submissions to the Low Pay Commission as it begins a new phase of work.

The Low Pay Commission is an independent body set up by the Minister last year whose main function is to advise the Government on the appropriate rate of the National Minimum Wage.

Minister Nash has requested the Low Pay Commission to examine two other areas relating to low pay as part of its next phase of work.  It is to investigate the preponderance of women on the National Minimum Wage and the underlying causes and also the appropriateness of the sub-minima rates which currently apply to young people.  The LPC has been asked to look at these youth rates with regard to their impact on youth employment and participation in education.  

As part of this work, the Low Pay Commission is now seeking submissions from interested parties on these two matters and also the National Minimum Wage, as part of its annual examination of the rate.  

Minister Nash said, “We have fundamentally changed the way that the national minimum wage is set through the establishment of the Low Pay Commission and I am pleased that this independent body is now moving onto its next phase of work.  

“I have requested that it examines issues relating to women, who represent the majority of those who earn the minimum wage, and also to young people who can be paid lower rates See table for sub-minima rates of the minimum wage.”

“The Low Pay Commission is also gearing up for its second year examining the appropriateness of the rate of the National Minimum Wage and as part of that process is it seeking submissions on that matter.”

The closing dates for the submissions are as follows:

1.        The appropriateness of the current sub-minima rates with regard to their impact on youth unemployment rates and participation in education – Closing Date Friday 8th January 2016

2.        The National Minimum Wage – Closing Date Friday 11th March 2016

3.        The underlying reasons for the preponderance of women on minimum wage – Closing Date Friday 11th March 2016

As part of the public consultation process, the Low Pay Commission is placing advertisements in national newspapers today (Friday 4th December) seeking submissions.  

In July of this year, the Low Pay Commission submitted its first report to Government recommending an increase in the Minimum Wage of 50 cent, to €9.15 per hour.  This recommendation was accepted by the Government and corresponding issues relating to employer and employee PRSI were addressed in Budget 2016.  

The new rate of €9.15 per hour will be introduced from the 1st of January and will mean a pay increase for more than 124,000 people on the lowest pay in society.