In a report released on 11th June, the Low Pay Commission (LPC) recommended that the sub-minimum youth rates in the minimum wage be abolished. This comes as a victory for unions who have consistently campaigned for equal pay for younger workers

Welcoming the recommendation General Secretary of the Irish Congress of Trade Unions (ICTU), Owen Reidy, said: 

"This is an issue trade unions have been campaigning on for many years and we welcome that the LPC, having looked at this matter in a calm and considered way - with all the available data, legal advice and stakeholder consultation - has unanimously recommended abolishing lower minimum wage rules for all young workers - over 18s and under 18s."

"I note the initial response of the Minister, which seems somewhat begrudging. There is little point in having a LPC including the social partners consider the evidence and unanimously agreeing recommendations, if the Government's response is to potentially fudge or long finger a response. Government needs to take the recommendation to scrap sub-minimum wage rates seriously and implement it accordingly. Our young workers deserve no less,” concluded Mr Reidy. 

Current minimum wage legislation allows employers to pay young staff at a reduced rate. 19-year-old workers can be paid at a rate of 90% of the minimum wage, while 18-year-old workers can be paid at 80%, and 70% for workers 17 years old or younger.

Responding to mounting pressure, on 28th February 2023 the then Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, wrote to Ultan Courtney, Chairperson of the Low Pay Commission, seeking “that the Commission examine the issues around retaining or removing the youth rates and to make recommendations on the subject.” 

In response to the then Tánaiste’s letter, the Low Pay Commission held a consultation period running from June  to July 2023.  

A background research report on the issue of sub-minimum youth rates was also commissioned. That report was published 2nd November 2023.

The Commission took into consideration the contents of the background report as well as submissions made by stakeholders during the consultation period. The Commission presented four recommendations in their final report:

1. Sub-minimum wage rates for employees who are 18 and 19 should be abolished no sooner than 1st January 2025.
2. Sub-minimum wage rates for employees who are not 18 should be abolished no sooner than 1st January 2025.
3. If youth rates are abolished, after these rates have been abolished for two years, a study should be conducted to evaluate if there were adverse consequences from removing sub-minimum rates, in particular for those aged under 18.
4. Consideration must be  given to how employers with a substantial proportion of young workers in receipt of sub-minimum wages can be supported during and after the period in which youth rates are abolished, if they are abolished.

The Department for Enterprise, Trade and Employment, will now commission an economic impact assessment and seek legal advice on the report’s recommendations.

There’s never been a better time to join a union, and it’s never been easier. Join Fórsa today.