In-work poverty and an increase in the national minimum wage to bring it up to a living wage were the main calls highlighted in Fórsa’s recent submission to the Low Pay Commission.

In the submission, Fórsa called for an increase in the existing national minimum wage that would effectively replace the minimum wage with a real living wage, set at 60% of the median hourly wage, by 1st January 2026. To achieve this, an increase of €1 is required.

This would be in line with the previous government’s commitments and recommendations made by the Low Pay Commission.

In the submission, Fórsa stressed that it was vital that the national minimum wage is seen and understood as a wage floor and absolute minimum rather than a ceiling. The union said it must not replace or restrict access to collective bargaining agreements or employment regulation orders which may secure higher wage rates in certain employments.

The Central Statistics Office Survey on Income and Living Conditions 2024 shows that poverty still exists for those in employment, with most recent in-work poverty figures at 5.4% This data re-emphasises the stark reality that minimum thresholds set below 60% of median wage place workers at high risk of in-work poverty.

In a wealthy country like Ireland, with a tight labour market, a minimum threshold of at least 60% should be considered reasonably practicable.

Fórsa national secretary and ICTU vice-president, Katie Morgan, said: “While employment should always provide people with the means for a decent quality of life, it does not automatically guarantee a quality standard of living or that a person will no longer experience poverty. The small increases in pay rates recommended for those who need them most, would deliver meaningful improvements in quality of life and living standards. This would also take an important step in advancing fairness and equality across our labour market.”

Fórsa also called for the abolition of sub-minimum rates of pay for workers under the age of twenty in the recent submission. 

The National Minimum Wage Act explicitly discriminates against workers based on their age. It allows employers to pay those under 18 at 70% percent of the national minimum wage, those aged 18 at 80% and those aged 19 at 90% percent. 

In 2023, the Council of Europe also concluded that Ireland was in breach of the revised European Social Charter due to its sub-minimum rate of pay for young workers and failing to ensure a decent standard of living for these workers.

While the majority of Fórsa’s membership is covered by collective bargaining agreements with their employers, it is essential that statutory minimum wage thresholds are set at a level that ensures that workers not covered by collective agreements can earn a fair and adequate wage that ensures a decent quality of living.

This would greatly benefit workers earning the minimum wage, largely concentrated in our retail, accommodation, food, or wholesale sectors, where lower wages are more predominant.

The submission to the Low Pay Commission was made in the context of the government’s decision to delay key measures already agreed that would make life better for working people. These include the delay of pension auto enrolment and a delay to the implementation of a national living wage for three years.

ICTU’s general secretary Owen Reidy said the delays were “shameful and unacceptable” and revealed that government policy seems to favour employers over low-paid workers, and called for supports for workers who may face short-time working breaks or layoffs due to anticipated economic challenges.

Fórsa’s policy officer, Aisling Cusack, said: “Inflation is slowing down, and the Government has indicated that it does not intend to continue cost-of-living supports, such as energy credits, or introduce new cost-of-living measures in the next budget for 2026 through the 2025 Finance Bill. The planned cessation of these supports places a greater urgency on the need to increase wages for those earning the minimum wage so that they can afford basic necessities and a decent standard of living without temporary cost-of-living supports.”

The national minimum wage is currently set at €13.50 per hour, effective from 1 January 2025. Fórsa is recommending an increase of €1 per hour which would bring the statutory minimum hourly rate of pay to a living wage of €14.50. 

This change would allow our lowest paid workers to meet their basic needs and give them a better chance of avoiding in-work poverty.

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