In this week’s Public Policy Bulletin, we cover the proposal by the Irish Government to introduce a living wage, and Ireland gives its support to an EU law which aims to increase protections for consumers transacting online. In Northern Ireland, a new cost-of-living payment has been announced to deal with the current inflationary environment, while the latest labour statistics show the highest employment levels on record.
Living wage for all proposed for Irish employees
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 proposed to take place over four years from next year up to 2026. It is proposed 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 proposed 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.
Ireland approves EU Digital Services Act
Ireland has given its support to the approval of the EU’s Digital Services Act (DSA). The proposed legislation, which is in the final stages of becoming EU law, aims to increase protections for consumers transacting online by modernising the e-commerce directive in relation to disinformation, illegal content and transparent advertising.
The law will form a single set of rules across the EU to create a safer and more open digital space. The DSA will apply fifteen months on or from 1 January 2024, whichever comes later, after entry into force.
New cost-of-living payment announced in the UK from 14 July
Qualifying low-income households across the UK (including Northern Ireland) will receive the first instalment of a cost-of-living cash payment designed to ease the cost-of-living pressures. From 14 July, more than eight million households will receive £326, with £324 to follow in the Autumn. The total support package will be £1,200 for the year.
The payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
The UK’s Work and Pensions Secretary, Thérèse Coffey said:
“With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living. This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”
Read more information on the scheme.
Latest labour market statistics for Northern Ireland
The number of employees receiving pay through HMRC PAYE in Northern Ireland stood at 779,100 in May 2022, an increase of 4.2 percent over the year. The number, the highest on record, is the twelfth consecutive month that employee numbers have been above pre-pandemic levels. Media monthly pay for these workers is £1,925 in May 2022, an increase of £120 over the year.
The seasonally adjusted number of people on the claimant count in May 2022 was 36,300 which represents 3.8 percent of the workforce which is a decrease of almost 1 percent from April 2022. Confirmation that 90 redundancies occurred in May 2022 was received by the Northern Ireland Statistics and Research Agency (NISRA). Read more on these statistics.
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