A new study has shown that one in five people in Ireland are earning below the Living Wage, as a proposed increase in the standard payment will be considered ahead of Budget 2022.
Costs are rising across all areas of society amid inflation, and according to the Living Wage Technical Group, a hike of 60c would be needed for households to afford their basic needs.
The group that calculates the Living Wage in Ireland say it should be increased to €12.90 an hour ahead of October 12's decision.
Reasons for the increase reference rising rent, transport, and energy costs, and although a number of employers in Ireland have committed to paying their staff what is deemed the Living Wage, it is not associated with the national minimum hourly pay which is €10.20 by law.
Speaking about the recommended increase, Robert Thornton, VPSJ Senior Research and Policy Officer and a member of the LWTG said; “It represents the minimum required to meet physical, social, and psychological needs, and enable life with dignity.
"Having an income below this standard of living means doing without goods and services which are essential for taking part in the norms of everyday life in Ireland."
Explaining its calculations, the LWTG said rent costs account for 3.9% of the 4.9% increase.
It also said Dublin housing costs now account for 64.7% of a Living Wage net salary, based on the 2021/22 rate.
The combination of surging energy prices for home heating and transport costs is resulting in more pressure on workers in Ireland, and last week, Tánaiste Leo Varadkar also acknowledged that wages and allowances do need to increase.
“The point the deputy makes about middle Ireland is absolutely right,” he said.
“In the budget, we are looking at things like an increase in the fuel allowance and increases in pensions and social welfare so that people can keep up with the rise in the cost of living.
“It is not an increase; it is really just indexation, and the same thing applies to our working people too.
“That is why we need pay increases and there will be pay increases in most parts of the economy in the coming year, including the public service, as well as an increase in the minimum wage.”
