Minimum wage increases have boosted the take home pay of low-paid workers, despite a fall in the number of hours worked.
The latest analysis from the ESRI think-tank has revealed that even though weekly hours have fallen by as much as three hours per week for some sectors, the cumulative minimum wage hikes have offset the loss from less hours.
From 2016 to 2018, the minimum wage increased on three occasions, rising from €8.65 to €9.55 per hour.
Dr Paul Redmond, author of the ESRI report, said: “As the minimum wage increases, it is important that we monitor the impacts on employment.
“Our research has found a small reduction in hours worked among all minimum wage employees following three recent minimum wage increases.
“However, those working in manufacturing and in accommodation and food experienced a larger reduction in hours.
“Despite this, the minimum wage increases appear to be large enough to offset any decline in earnings due to working fewer hours.”
Ultan Courtney is chairman of the Low Pay Commission, the body which recommended to Government the minimum wage pay hikes.
He said: "The Low Pay Commission has an evidence-based approach to making its recommendations.
“The report published today increases our knowledge and understanding of the impact and effects of increases in the National Minimum Wage.
“I am pleased to note that the report finds that the average minimum wage worker was financially better off as a result of increases in the National Minimum Wage, with the increases recommended by the Low Pay Commission large enough to offset any effects of reduced hours."
