National minimum wage likely to rise to €9.80

The national minimum wage is likely to be increased by 25 cent to €9.80 an hour later this year under new proposals to be given to Government.

The Low Pay Commission is expected to recommend a rise of 25 cent for adults in a report scheduled to be given to Minister for Employment Affairs and Social Protection Regina Doherty on Wednesday.

Any increase in the national minimum wage on foot of the new recommendation could benefit up to 120,000 workers.

We cannot repeat the mistakes of the recent past by allowing costs to get out of control in times of economic growth

A rise of 25 cent in the national minimum wage for adults would be slightly less than the 30 cent rise recommended last year.

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Any increase in the national minimum wage is expected to be supported by trade unions but opposed by some employer representatives.

Last weekend the Small Firms Association urged the Government not to “ fuel business cost rises” by increasing the minimum wage. It said costs for small businesses were “already shooting up”.

Appropriate rate

“We cannot repeat the mistakes of the recent past by allowing costs to get out of control in times of economic growth,” the association said. “It is vital that in 2019 there is no further increase in the national minimum wage rate.”

The Low Pay Commission was established by the Fine Gael/Labour coalition in 2015 to advise the Government on the appropriate rate for the national minimum wage. It comprises an independent chairman appointed by the Government as well as representatives of unions, employers and campaign groups who came through a public appointment process.