Could the New Minimum Wage be €9.25?
Could the New Minimum Wage be €9.25?
The Low Pay Commission has recommended an increase of 10 cent to bring the new minimum wage to €9.25. The Commission have examined the employment and unemployment rates generally, how earnings have changed since the minimum wage was last increased and what impact a change to the minimum wage would have on employment, the cost of living and on national competiveness.
Many employees on the minimum wage are those within the services sector and there lies the biggest challenge for employer wage cost management e.g. hotels, restaurants and retail and where the wage bill constitutes one of the largest overheads.
The Commission made strong recommendations to the government that the anomalies that currently exist for both employees and employers in relation to PRSI and taxation variances need to be addressed if a wage increase is to make a difference in real terms for both employees and employers.
It has been recommended by the Commission that any increase would be implemented from January 2017.
This recommendation and report will now be considered by the Minister who will decide if he will approve the same.
