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

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[1] 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

    [1] See table for sub-minima rates

  1. 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.

ENDS

For more information contact Deirdre Grant 086 0484 279 or press.office@djei.ie 01 631 2200

Editors’ Notes:

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.

RateCurrent rateNew rate - 01/01/2016
Experienced adult worker€8.65€9.15
Under 18€8.65 *70% = €6.06€9.15 * 70% = €6.41
First year over 18€8.65 *80% = €6.92€9.15 * 80% = €7.32
Second year over 18€8.65 *90% = €7.79€9.15 * 90% = €8.24
Trainee rates*
First one-third period€8.65 *75% = €6.49€9.15 * 75% = €6.86
Second one-third period€8.65 *80% = €6.92€9.15 * 80% = €7.32
Third one-third period€8.65 *90% = €7.79€9.15 * 90% = €8.24

                    

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