The statutory minimum wage is set to increase to €10.10 an hour on 1^st February on foot of the Low Pay Commission’s recommendation. The belated Government decision brings an end to months of uncertainty for minimum wage earners.

The official adoption of the increase was deferred at budget time, leaving some 130,000 workers uncertain about whether they would be seeing any increase in their wages.

The 30 cent rise – up from the previous rate of €9.80 – will increase the gross wage for a worker on a 39-hour contract by €11.70 a week.

Although welcome, the decision does not bridge the expanding gap between the statutory minimum wage and the ‘living wage,’ which measures what’s required to pay for basic necessities.

The living wage is currently estimated to be €12.30 for a full-time worker without children. The national minimum wage also currently stands 40 cent lower than the €10.50 per hour promised in the 2016 Programme for Government.

Aligning the national minimum wage and the hourly pay required to achieve a socially acceptable standard of living is the only way soaring rents and increased costs of living can be combated by the lowest-paid workers in the economy.