McGrath: Government will give 'careful consideration' to recommendation to increase minimum wage 

Finance Minister Michael McGrath has said the Government will give “careful consideration” to the Low Pay Commission’s recommendation when it comes to setting the national minimum wage for next year.

Mr McGrath made the comments while speaking to reporters in Cork on Friday.

When asked by The Echo if Government would consider the recent proposal from the Irish Congress of Trade Unions (ICTU) to raise the minimum wage by €2 in January and by a further €2 in January 2025, Mr McGrath said that Government will be guided by the recommendation of the Low Pay Commission – an independent body which makes recommendations to Government about setting a minimum wage that is fair and sustainable.

“We have a process in place now for the last number of years whereby the Low Pay Commission examine the issue of the minimum wage.

“They always make a recommendation to Government.

“It is evidence based and then the Government generally accepts that recommendation.

“Once we revive that, we will give it careful consideration,” he said.

Mr McGrath said that the commission will have to take into account a number of factors when making its recommendation.

“Of course the cost of living, the realities of the day to day lives that people working on low pay are facing, but they will also have to take into account the issue of competitiveness and the increase in costs of doing business because we do have to make sure that work always pays, but we also have to ensure that there is always work there for people, and that businesses remain viable.
"It is about striking that balance and the Low Pay Commission will weigh up all of that, will make a recommendation to Government and it’s normally on budget day or around budget time that the decision is made about any changes that would kick in in the following January,” he said.

The Low Pay Commission, established under the National Minimum Wage (Low Pay Commission) Act 2015, comprises equal numbers of employer representatives, employee representatives, and independent experts.

In its submission to the commission, the ICTU has argued that the national minimum wage should be increased in January 2024 by €2 to €13.30.

“We welcome the fact that the Government is committed to moving to a national living wage, but it needs to happen sooner,” Owen Reidy, general secretary of congress, said.

“The national minimum wage should rise to €13.30 in January 2024 and then increase by another €2 in January 2025.

“Increases to the NMW in 2021 and 2022 were well behind inflation hence the need for a more meaningful increase now.”