Poll: Should the minimum wage be increased?

THE GOVERNMENT HAS pledged to lift the minimum wage during its coming term, but it is already coming under pressure to go beyond its existing plans for low-paid workers.

The programme for government committed to reducing poverty by supporting an increase in the minimum wage to €10.50 per hour over the next five years, although it also said politicians would rely on the Low Pay Commission’s annual recommendations to work out any adjustments.

The Sunday Business Post reported the commission, set up by the last government, is facing calls for the minimum wage to be increased from the present figure of €9.15 per hour to the so-called ‘living wage’ of €11.50.

Unions have been lobbying for the increase as the economy recovers and the costs for essential requirements like housing continue to rise.

They argue a further increase would do little harm to businesses as there are relatively few workers on the bottom pay rate, while a rise would have a significant impact on the lives of those in low-earning roles.

However business groups have warned the economy is still relatively fragile and there is a risk the country’s competitiveness will fall by the wayside with wage hikes. Consumer prices have barely changed in recent years – with inflation running at just above 1% in the four years to the end of December, according to the CSO.

Ireland currently has the second-highest minimum wage for a full-time worker in the EU following the increase in the hourly rate from €8.65 at the start of the year. The pay rate was the sixth highest before the rise.

With all that in mind, we’re asking readers: Should the minimum wage be increased – and if so, by how much?

Have more to say? Tell us in the comments below