The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, has outlined his proposal to introduce a living wage for all employees. The living wage will be set at 60 percent 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, and will remain in place until the 60 percent living wage is fully phased in.
This is planned to take place over four years from next year up to 2026. It is envisaged that in 2026 the national minimum wage will no longer exist, and the living wage will be the floor, mandatory for all employers.
The proposals are based on recommendations the Low Pay Commission, which was tasked last year with conducting research into how best the Government can progress to a living wage. Depending on prevailing economic circumstances, it is suggested that the Low Pay Commission will be given discretion on whether the full living wage should be introduced faster or slower than the four years proposed.
The Minister will consult with interested parties, including employer and worker representative groups, unions, and the public on the draft plan.