Irish Government reveals plans to introduce living wage

The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar has outlined his proposal to introduce a living wage for all employees, starting from next year.

He will now consult with various interested parties, including employer and worker representative groups, unions and the public on the draft plan.

Last year, the Tánaiste asked the Low Pay Commission to conduct research and report to him on how best the Government can progress to a living wage. The new proposal is based on these recommendations.

“Better terms and conditions for employees must be one of the legacies of the pandemic,” he said. “The living wage will build on the programme of improvements we are making, from introducing mandatory sick pay, to auto enrolment for pensions, to putting in place the laws, regulations and infrastructure to give people more flexibility over how and where they work.” 

The proposal states that the living wage will be set at 60% of the median wage in any given year, which in 2022 would be €12.17 per hour. The national minimum wage is currently €10.50 per hour.

It also states that the national minimum wage will remain in place until the 60% living wage is fully phased in, in 2026, but will increase over the years as usual, closing the gap between it and the living wage.

In addition, from 2026, there will no longer be a national minimum wage–instead there will be a living wage, which will be mandatory for all employers.