National Minimum Wage should increase to €11.25/hr in 2021
The Labour Party has set out plans to increase the National Minimum Wage next year to €11.25 (up from €10.10) and formally link the rate to two-thirds of median hourly earnings.
These are some of the proposals laid out in the party’s submission to the Low Pay Commission for the 2021 rate of the minimum wage, submitted today.
Commenting on the plans, Labour spokesperson on Employment and Social Protection, Ged Nash T.D, said:
“We currently have far too many workers on low pay in this country, with one of the highest rates in Europe and the OECD of 23%.
“This is compounded by the high cost of living, particularly in Dublin, with out of control rents and the high cost of goods and services that leaves many low paid workers struggling to make ends meet.
“Workers need a living wage and our submission to the Low Pay Commission today takes a common sense and practical approach.
“Since it was first introduced in 2000 and set at a level that corresponded to around two-thirds of the median hourly average income, the National Minimum Wage (NMW) has failed to keep up with rises in median incomes. If it had, it would currently stand at around €13.45 an hour instead of €10.10.
“To bring this back into line, we’re proposing that the NMW is formally linked to two-thirds of median hourly earnings, rising to match this over a period of three years.
“As an incremental step on that journey, we are seeking an increase in the rate to €11.25 in 2021.
“With women more likely than men to be earning the minimum wage, this increase would also move to reduce the gender pay gap of 13.9%.
“The Labour Party is also proposing that a review be undertaken to examine the feasibility of extending the NMW to those in a statutory apprenticeship.
“Given our chronic shortage of construction workers and the comparatively low uptake of apprenticeships, partly due to low levels of pay, this measure should be explored to recruit and retain more suitably qualified workers into such sectors.
“Full time workers in Ireland should be paid enough to have a decent minimum standard of living, which is currently not the case.
“We believe our proposals will address this and ensure no worker is in ‘low-paid’ employment.”
Labour’s submission to the Low Pay Commission can be found here: