Fianna Fáil has recommended a 6.4% increase in the National Minimum Wage (NMW) to €9.20 as part of the party’s submission to Low Pay Commission.
Party spokesperson on Jobs, Enterprise & Innovation Dara Calleary TD commented, “Our primary focus in this submission is to ensure a decent standard of living for lower paid people by creating a living wage and improving job security. Fianna Fáil believes that the utmost importance should be given to supporting those on low and middle earnings, who are finding it hard to meet their weekly financial commitments.
“Based on all the economic data currently available, Fianna Fáil recommends increasing the NMW by 55 cent (+6.4%) to bring it up to €9.20 per hour. This takes inflation rates over the last 8 years as well as current economic growth forecasts into consideration. Spread over the course of a year, this increase would equate to an extra €1,000 in pay for a person on the National Minimum Wage.
“In preparing this submission, Fianna Fáil consulted widely with social partners and stakeholders. I led a party delegation to meet the UK’s Low Pay Commission to discuss its operation and learn from its experience over the past 18 years. Its long term record is one of raising the minimum wage and increased wages for workers at the bottom without damaging jobs in the economy”.
In this submission, Fianna Fáil puts forward detailed recommendations for the Low Pay Commission including:
- A 6.4% increase in the National Minimum Wage to €9.20 per hour, representing an increase in gross pay of €1,115 per annum (based on a 39 hour week)
- An expansion of the remit of the LPC to include a definition of a “Living Wage” and a corresponding calculation of an hourly rate to achieve this
- The State as a major employer should seek to ensure that people it directly and indirectly employs are paid the Living Wage
- Examination of the potential need for a separate minimum wage within the Dublin metropolitan area to reflect the higher cost living in the region
- Rigorous action to enforce the current and revised NMW including naming and shaming of employers who fail to comply with legislation
- The adoption of specific NMW wage levels for various youth and apprentice categories
- Remit of LPC should extend to make recommendations on low pay workers, who are on short hour or zero hour contracts
- Employer PRSI contributions for those on low pay to be examined