Increase of 13.3% in Rate of Minimum Wage highlighted in First Three-Year Report of the Low Pay Commission


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Increase of 13.3% in Rate of Minimum Wage highlighted in First Three-Year Report of the Low Pay Commission
 
Wednesday, 27 March, 2019: The Minister for Employment Affairs and Social Protection, Regina Doherty T.D., today published the Low Pay Commission’s first three year report, covering the activities of the Commission during its first term of office.
 
Speaking today, Minister Doherty said:
 
“This report from the Low Pay Commission demonstrates the work that has been done by the Commission since it was established in 2015.  Alongside its core task of making recommendations each year to Government on the appropriate rate for the National Minimum Wage, the Commission has examined and reported on matters as diverse as the sub minimum rates of the National Minimum Wage, the preponderance of women on the National Minimum Wage, and the allowances provided for Board and Lodgings under the National Minimum Wage.”
 
During its three year term from 2015 to 2018, which the report covers, the Commission produced 9 reports in total.  This report reviews that body of work, as well as considering the impact of its recommendations on a range of economic factors.
 
Dr Donal de Buitléir, Chairman of the Commission noted:
 
“Of particular note is the research partnership the Commission has established with the ESRI, and our close collaboration with the CSO, both of which have resulted in a strong evidence-based approach by the Commission in making its recommendations to Government.”
 
The Minister added:
 
“The increase of 13.3% in the hourly rate of the national minimum wage since 2015, without undue impact on jobs or on competitiveness is, I believe, testament to the work of the Commission and its emphasis on research and consultation”,
 
A copy of the report can be accessed here.

Information for Editors
Low Pay Commission three year report (2015-2018)
The National Minimum Wage (Low Pay Commission) Act 2015 requires the LPC to report generally on the operation of the Act once every three years, including on the impact of any orders made under the Act on low pay, income distribution and employment costs.  This report reviews the operations of the Commission for its term of office from 2015 to 2018, providing a background to the Commission, its membership and composition, work undertaken during its first three year term and the impact of its recommendations on a range of economic factors.
 
Main Conclusions
·      The recommendations of the Low Pay Commission to increase the national minimum wage have resulted in a 13.3% increase in the National Minimum Wage hourly rate since 2015.
·      The Commission has examined a range of related matters and has presented reports to Government on issues such as the Sub Minimum Rates of the National Minimum Wage, the Preponderance of women on the National Minimum Wage, and the allowances provided for Board and Lodgings under the National Minimum Wage. 
·      The Commission has been committed to its evidence-based approach to making recommendations to Government.  It has worked closely through a research partnership with the Economic and Social Research Institute (ESRI), and engagement with the Central Statistics Office (CSO), to improve the availability of minimum wage-specific data. 
·      The report indicates that ESRI research (based on the 2016 change) shows impacts across a range of areas (principally in the wage range of €6.50 to €11.50 per hour), and that the minimum wage increase was associated with a reduction in hourly wage inequality.
·      Throughout the three years under review the Commission has engaged with a broad cross-section of stakeholders and interested parties and has found its annual consultation process to be an important part of the decision-making process for the members.
 
ENDS
Department of Employment Affairs and Social Protection
Last modified:27/03/2019