13th September 2016
Minister for Employment and Small Business Pat Breen T.D., today asked the Low Pay Commission to review the rates for “board and lodgings” which are reckonable as part of the national minimum wage.
In determining an employee’s average hourly rate, certain reckonable components may be taken into account. For example, if an employer provides an employee with full board and lodgings, or lodgings only or full board only, a monetary allowance can be included as reckonable pay.
Minister for Employment and Small Business, Pat Breen TD said “ During a recent Dáil debate on the Au Pair Placement Bill 2016 I indicated that given the passage of time since these board and lodging rates were set in 2000, I think it is now timely that their appropriateness be reviewed. I also indicated that I would be asking the Low Pay Commission to undertake this review I have now written to the Chair of the Low Pay Commission requesting that this work be included in their 2017 work programme.
I look forward to the Low Pay Commission reporting back in relation to the appropriate level for these rates. The Commission is already engaged in reviewing the appropriateness of the sub-minima rates, which have also not been reviewed since their introduction, and the reasons behind the preponderance of women on the national minimum wage. I look forward to receiving those reports by the end of October next and following that the Commission will then proceed to report on the board and lodgings rates.”
I would like to thank the Commission for its continued valuable work in these areas.
For further information please contact Press Office, D/Jobs, Enterprise and Innovation ph. 6312200 or firstname.lastname@example.org
Notes for Editors
Rates for Board and Lodgings
Under the National Minimum Wage Act 2000 (National Minimum Hourly Rate of Pay) Order 2000 (SI No. 95/2000) certain reckonable components may be taken into account for all workers to determine an employee’s average hourly rate. The Act provides for the following amounts:
- €54.13 for board and lodgings per week, or €7.73 per day;
- €32.14 for board only per week, or €4.60 per day;
- €21.85 for lodgings only per week, or €3.14 per day.
Thus, if an employer provides an employee with full board and lodgings, or lodgings only or full board only, a monetary allowance can be included as reckonable pay.
The inclusion of this provision in the National Minimum Wage legislation was recommended by the Inter-Departmental Group on Implementation of a National Minimum Wage. It was the view of the Inter-Departmental Group at the time that the monetary value of the allowances for the purpose of the National Minimum Wage would not be at market value and would be similar to the amount permitted in the Employment Regulation Orders that existed at the time.
Low Pay Commission
The Low Pay Commission website contains information about the Commission’s activities along with copies of its published reports which can be downloaded from www.lowpaycommission.ie
The membership of the Low Pay Commission is:
Dr Donal de Buitléir – Chairperson - Director of PublicPolicy.ie
Vincent Jennings – CEO Convenience Stores and Newsagents Association
Patricia King - General Secretary of ICTU
Gerry Light - Assistant General Secretary, Mandate Trade Union
Caroline McEnery Director - The HR Suite; HR & Business Solutions
Edel McGinley - Director, Migrant Rights Centre Ireland
Mary Mosse – Former lecturer in Economics, School of Business, Waterford Institute of Technology
Tom Noonan – Former Chief Executive, The Maxol Group, (President of Ibec (2008–2010))
Prof Donal O’Neill - Dept. of Economics, Finance & Accountancy, NUI, Maynooth
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