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Low Pay Commission to examine impact of National Minimum Wage on young people and women printable version

10 Nov 2015: posted by the editor - Ireland

The Low Pay Commission undertake an examination of the impact of the National Minimum Wage on two sectors, young people and women.

As part of the Low Pay Commission’s remit, the Business and Employment Minister may request it to examine matters related to low pay. Minister Nash has now asked the Commission to examine the appropriateness of the sub-minima rates for young people as currently provided for in the National Minimum Wage Act.

In particular, he is asking the Commission, chaired by Dr Donal de Buitléir, to examine the impact of these rates on youth unemployment rates and participation in education. The Commission is expected to complete this work by the end of February next year.

Currently, workers under 18 years of age, or those in their first or second year of work may be paid a lower hourly rate of pay (see table below). Those who are on certain training courses may also receive lower rates of pay.

Minister Nash said: “I want to have a better understanding of the impact of the National Minimum Wage on younger people, particularly those who may not be in employment or education. I think it is also timely that we examine if these lower rates of the minimum wage that apply to young people and those undergoing a structured training programme are appropriate.”

Minister Nash has also asked the Low Pay Commission to examine the issue of women and the National Minimum Wage.

“It is well known that the vast majority of those who are paid the National Minimum Wage are women. Given the preponderance of women in low paid jobs, I have asked the Low Pay Commission to help us come to a better understanding of why this is so and what might be the underlying reasons for it. I have also requested that they make any recommendations they consider appropriate to address this by October 2016.

“I am pleased that more than 124,000 workers will see an increase in their pay packets come the 1st of January as a result of the Government decision to accept the Low Pay Commission’s recommendation of a 50 cent hourly increase in the NMW to €9.15. Given the Government’s decision in the Budget to accept the Commission’s recommendations in relation to the need to address PRSI anomalies, I am also pleased that employees will receive a substantive proportion of the increase, and the additional costs to the employer have been mitigated to a certain degree.”

He concluded: “With the first round of this important work done by this new body, I believe the Low Pay Commission also has a distinctive role to play helping the Government to understand issues relating to low pay in general.”

The Low Pay Commission is made up of a chairperson and eight members from academia, and from business and worker interests.

Tags: Low Pay Commission, National Minimum Wage

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