Low paid workers are set for massive pay hikes of up to 25% under new Government plans.
Cabinet has signed-off on plans for the Low Pay Commission to formally start working on preparing the ground for a new ‘living wage’ to replace the National Minimum Wage.
This would see a huge increase in weekly take-home pay for employees on low wages as the current minimum wage is €10.10 an hour, compared to a proposed living wage of €12.30.
The Government is now committed to this goal within its lifetime and the Commission must present its plan by the end of this year to show how we can make this happen.
Minister for Business, and Tánaiste, Leo Varadkar, said this morning: ““The pandemic has caused us to redefine frontline or essential workers and to reconsider the value we place on their work and the reward they should get for that work.
“Traditionally, when we thought of frontline or essential workers, we thought of nurses, doctors, Gardaí or firemen. Generally, people working in the public service with relatively well paid, secure and pensionable jobs.
“Now we think also of retail workers, drivers, security guards, transport workers and cleaners.
“One of the legacies of the pandemic must be a more inclusive society that rewards work and enterprise better.
“That means better terms and conditions for lower paid workers.
“Moving to a living wage is an important part of this.
“Of course, in doing so we need to recognise that many businesses are closed and are now loss-making, so we must do it in a way that does not cost jobs or cause people’s working hours to be reduced.
“That would be counter-productive.
“Although the Low Pay Commission has done some initial work, we now have the agreed terms of reference to allow the Commission formally begin its research and advise us on an appropriate model in an independent and evidence-based way so that we can move towards a living wage over the period of this Government.
“This work will build on the improved social protections for workers over the last five years, including paternity benefit, parental leave, our plans for a statutory sick pay scheme and the extension of social insurance benefits to the self-employed.”
