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THE LOW PAY Commission has recommended that the minimum wage should be increased, Tánaiste Leo Varadkar has confirmed to The Journal.
In an exclusive interview, the Minister for Enterprise, Trade and Employment said:
“I have a recommendation from the Low Pay Commission and they are recommending that minimum wage be increased. I’ll bring that recommendation to Cabinet in September.”
Since 1 January 2022, the national minimum wage is €10.50 per hour. The last increase to the hourly rate was 30 cent.
In the past, hikes in the minimum wage have been between 10c and 60c, but it is expected the increase to be announced shortly could be higher.
Government sources have confirmed that it is a “decent jump” in the current rate.
Typically, minimum wage increases kick in on the first day in January.
While a number of cost-of-living measures are due to be brought in before Christmas, it is understood there are no plans to introduce the new minimum wage before 2023, as businesses will need time to plan for it.
“I think what we’ll need is an increase in the minimum wage, you know, even separate from the phasing in of the living wage. There will have to be an increase in the minimum wage.
“I think it is needed, because the cost of living has gone up by a lot. And we know those most affected are those in lowest income,” Varadkar told The Journal.
The medium term proposal is to bring in a ‘living wage‘, pitched at 60% of median earnings, said Varadkar.
“That’s to be phased in over four years. I’d like next year to be the first year. I suppose it might be described that the minimum wage increase that’s going to happen will be the first step in doing that,” he said.
Varadkar said the increase is in line with their proposals to to move towards a living wage, stating he’d like to see that plan introduced “sooner rather than later”.
“If it can be speeded up, I’d be in favour of that,” he said.
However, he said Government also needs to keep in mind the impact of the costs on businesses.
“Businesses will now be facing wage increases, as well as rising energy costs, coupled alongside other initiatives such as the new statutory sick pay law and auto-enrollment in a pension scheme.
“We don’t want to load new additional costs on business so quickly that businesses end up having to cut people’s hours or even that people go or even close down,” he said.
“Because the most important workers rights is the right to work. And if you do things that are counterproductive, you’re helping nobody,” added Varadkar.
Calls for €15 per hour
Reacting to the news that the minimum wage is set to rise, People Before Profit TD Richard Boyd Barrett said the hourly rate should be raised to €15 per hour.
“With the rocketing cost of living and rents and an already very high proportion of workers on low pay, even before the cost of living hikes, anything less than €15 euro per hour is simply not a living wage.
“The government promised a pay back for workers after Covid. A €15 per hour minimum wage and pay rises in line with inflation is the least workers should expect,” he told The Journal.
Labour’s Marie Sherlock said her party is looking for a minimum €1 increase in the national minimum wage.
She said that a €1 increase would be a very small part of what needs to be done for low wage workers, who she said are “incapable of withstanding the savage increases in the cost of living at this point in time”.
Sherlock said a wage increase is needed, but targeted measures regarding energy bills and other measures also need to be implemented.
Social Democrat’s co-leader Catherine Murphy said the cost-of-living crisis has been most difficult for those on the lowest incomes, many of whom are at risk of falling into poverty.
“Instead of a minimum wage, we need to move towards a living wage – to provide a minimum floor of decency and dignity for workers. An updated living wage figure will be available next month from the Living Wage Technical Group, prior to the Budget, and government must incorporate this in their final decision,” she said.
Dr Laura Bambrick, ICTU Head of Social Policy and Employment Affairs said:
Germany announced in July they are increasing their National Minimum Wage to a Living Wage in October – a 25% increase on their lowest hourly pay rate to €12.
They are going to do in four months what our Government is planning to do over a four-year period. Low-wage essential workers can’t afford and shouldn’t be told to wait till 2026 for an adequate wage.
ISME, the group that represents small and medium businesses, told this website that “it is a matter of great frustration for the SME community that Government thinks the cost-of-living crisis can be addressed by increasing the national minimum wage. It cannot”.
“Increasing the national minimum wage makes no material difference to the living standards of those affected, but does increase the cost of unskilled or low-skilled labour,” it said, citing a ESRI report this year, which ISME says shows it only results in workers working fewer hours.
“The cost-of-living crisis cannot be outsourced to SMEs via increased wages… Raising what is already the third highest national minimum wage in the EU is not the answer,” it said.
The group has also has raised concerns with Government is its recent budget submission
It stated in the document that Ireland has the second highest national minimum wage in Europe, describing a hike in the rate as “a political cop-out from the more difficult issue of controlling the cost of living in Ireland”.
The group states that successive governments have abdicated responsibility to the private sector to deal with rising costs, stating that Ireland is the second most expensive country to live in within the EU.
In its submission, the group speaks about the cost of housing and lack of affordability, stating: “It is not in the gift of most SME employers to increase wages in line with these increases, and the State will have to intervene to provide adequate social housing at affordable prices.”
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Rounded down…yeah sure.
Ah the old psychology of making something look cheaper ie 1.97 instead of 2 Euro will finally come to an end. It costs the government 2 cent to make a 1 cent coin!!
The day will come in our lifetime when there will be no notes or coins. A cashless society where there is no way to dodge tax. The banks will then officially own your ass. But hey don’t mind me I’m just a rambling conspiracy theorist who drinks too much vino and smokes too much weed.
Good luck and good night
Apparently if you open a Bank of Ireland account after September 1st, 2013 you have to sign away your soul for all eternity and pay a €4 monthly fee. €4! Like we’re made of money or something.
Also, the reason things cost €x.99 instead of the round euro isn’t so that it looks cheaper but to force the cashier to log the sale in the till and give change. Otherwise the cashier could pocket the money with no record of the sale occuring.
Currently in Canada and they have scrapped the 1 & 2 cent coins. You buy something in shop and it comes to $12.32 you hand over $12.30 however if it was $12.34 you pay $12.35.
No they wouldn’t! That’s ridiculous to think at having a different price means that they must lodge the sale through! How much retail experience have you got? D you know that the bulk of sales systems don’t allow you to delete an item once it’s scanned without a managers approval? Basically making it impossible to get away with pocketing the money. On top of that, do you really think the consumer wouldn’t realise that you haven’t scanned the product in or given them a receipt? The simple reason that the prices are X.99 is to make the product look as though its price is lower than it is!
every transaction you have to pay with BOI. Having cash can cut down on how much you pay.
5 years experience through college in 2 stores!!!!! Both let you delete scanned items because it would be unworkable otherwise!!!! Why are you using so man exclamation marks!??!?!?!!?
Cool theory….how do you explain diesel for example currently being 151.9c/litre, and not 152c/l?! Your theory stinks my amigo!!!!
Yeah Australia too … However if you pay by card you only pay what you owe …$1.32 . They don’t round it up or down then. Seems to work fine …
Bullshit.
It’s to make it look cheaper.
There must be a camera on every till in Ireland by now.
I think perhaps the practice was brought in before scanners or managers passwords were invented.
About time. Those little coins are a nuisance.
I agree….. this makes a lot of cents.
Maybe everybody in Ireland from today should collect all their 1c coins, over a period of, say two months and give it to a good cause, like Crumlin children’s hospital
Please don’t, we will have nothing to rub together now !
I constantly annoy people in Tescos by filling the self service till with coppers. Its great no service charge it counts it and I get rid of the shrapnel after a night out!
Ta a mil for that tip
Are signs in shops that say you must spent 10 euro minimum on all laser/card transactions legal?
Probably because transaction costs incurred by shops on smaller shops arent worth it for many shops
I’m pretty sure thats just to stop people wasting time buying chewing gum with their card when theres a que in the shop.
No its not, its because of the fees the shop has to pay for the transaction, if someone is spending less than a tenner its not worth it to them.
I dunno bout d signs but I do know its d shop owner that makes d rules about the 10 euro charge on cards
I mean d bank don’t make that rule.
it depends on the shop. I used to work in a centra, and it was €3.30 or less, and the fees would outway the profit of the transaction. The €10 thing is greed
Anybody who doen’t want their 1c coins can send them to me.
That’s all well and good and its a move to be welcomed cause those coins are a nuisance! I always pay by card, hate carrying cash for many reasons but mainly cause if I have it on me ill spend it easier but recently the banking charges are colossal! No point encouraging everyone to pay by card more if we are going to be robbed by the banks for doing so!!!
Think most people would happily see back of 1 & 2 cent coins Burr only if it can be done fairly.
Problem us we know all retailers retail round everything up in price rather than some items up and some down.
Net result buy 5 items previously 1 cent each, now 25 cents total compared to previous cost of 5.
Some items with no rounding required will be increased in price out of pure opportunism, as every increase is profit in retailers back pocket.
Not to mention effect in supply chain, if producer, wholesaler and retailer all round up, consumer is left with a hefty increase.
Nice idea but too easily manipulated for greed to work
Five one cent items would cost 5 cent, not 25 cent, unless you bought the five items in separate transactions…..
Ginger, you really didn’t read the story, did you?
What the hell can you buy for 1cent these days anyway?!?
Read the article Ross, and silk work well in trials, but if implemented, will retailers really charge 1.97 if no 2 cent coin exists, everything will be in multiples of 5 cent.
All prices would go up if this implemented, not but design but due to retailers opportunism.
Everyone price of pint had been increased a few cents, this increase always ends up being doubled by retailer. (new menus don’t cost that much)
We would be a long way further down the electronic payments road if successive governments hadn’t put a prohibitive level of stamp duty on credit cards and to a lesser extent debit cards.
As own goals go, it’s a good one as it encourages people to make cash payments where taxes can be avoided. You could even question whether they may have lost money through it.
Yeah Charlie McCreevy lectured us all about a cashless society, and then decided to charge us stamp duty for the privilege. Only in Ireland
Got rid of them recently in Canada and I have to say I barely even noticed. It costs more to make each coin than the actual value of them so get rid.
Yessss!
PLEEEEEASE let them go ahead with this idea!
They do it in NZ, where it’s referred to as ‘Scandinavian Rounding’.
Got rid of them in Australia, years ago best idea yet.
Yes, price is rounded down (between 1 -2 cents) or up ( 3- 5 cents), balances out at the end of he day.
Now, looking at getting rid of 5cent coins, bring that on to……………..!
Ahh please don’t- what will I use to annoy the busman with now?!!
The only flaw i see in this scheme is that i can not see shopkeepers rounding down prices it is more likely that they will round up to satisfy their own greed.
Will they stop charging €1.99 etc for items?
They have this in amsterdam so u dont get your full change if its say 1.53 but u also cant pay the exact amount of it comes to 1.53 (cant pay 1.50 either) which is quite annoying when u only have exact change (some places also only takes laser card instead of cash and my visa debit doesnt count and wind up with bank charges if they do accept! Not very tourist friendly at all not all if ypu can pay by laser and nothing else incl cash! Rant over!)
As for people paying for something under a tenner with a card wrecks my head holding up the que in the shop,there just too lazy to go to ATM.
What if they’re nowhere near an ATM and don’t drive? My little village has 1 ATM and it’s about a 20 min walk from my house. If I need some bread and milk from the local shop you can wait your turn cos I’m not walking 20 mins there and back just so you can save 45 seconds of your life
Jesus they have no cents at all.
One thing for sure, the consumer will not benifet from this.
The savings made on banking workload will simply be absorbed into their profits
The rounding will eventually suit the retailler. Sure the €1.99 will drop to €1.95 but other items will be bumped up 10c to compensate. Already I see the large supermarkets advertising the deals as simply €2 and €1 etc… They are ahead of the curve cleaning up that extra 1c – the smaller shops will be next to cotton-on.
About time.it should have been done years ago.
About time useless shrapnel. No need for them in the first place. Should have followed the Aussies with that and plastic notes too
CGP Grey on youtube does a great vlog on how pointless and expensive pennies are: https://www.youtube.com/watch?v=y5UT04p5f7U&feature=youtube_gdata_player
Fair comment if there’s no ATM but when there’s one in d shop and they hold up the que come on like,it’s as bad as someone going in with a bag of 1s and 2s
ATMs don’t usually give out tenners and what’s d point queuing twice once for ATM and then for the till when u can just pay by card and get cash back!! It only takes a few seconds longer! But u know what they say patience is a virtue seldom in a woman, never in a man ;-)
Roy you’ll be pleased to know they’re rolling out machines that you can just scan your card across for transactions less than €15 (works a bit like a leap card). No swipe, No insert, No pin, no signature. Quick and easy peasy!
no receipt either ? hmm. so many times ive checked the receipt to see the cashier has pressed the wrong number. not fraud or anything like that but depending on the keypad the 123 can be at the top or the 789 on another is on the top. if you are busy its easy to make mistakes. if it automated its very hard to go back witb the bank statement looking for a refund. at least with casg you can count the xhange from the note you gave.
in excess 30 million in 1 & 2 coins in circulation (confirmed with CBOI)
Lets get them for struggling charities like Jack and Jill Foundation.
If 1c and 2c coins are still legal tender they have to be accepted. Surely.
It’s illegal to round any price up has to be down
It’s illegal?
Have you a source for that rather sweeping assertion?
But I have so many!
Since we changed to the Euro, I’ve routinely given them to charity. When we got rid of the punt, I found almost £20 in small coins lying around the place…
I’m pretty sure I’ve enough of these coins in jar to solve the countries debt problem
So if you’re one of the thousands of people who plonk 1/2c coins into a jar and cash it when its full, you would no longer be able to ”save” easily….thanks
What about all our favourite 2cent HARIBO sweets.
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