Ireland’s national minimum wage could be replaced by a superior ‘living wage’ once the Low Pay Commission produces a report on the issue later this year. A living wage, defined as the minimum necessary for a single full-time worker to meet their basic needs, is currently estimated at €12.30 an hour. That’s 20% more than the current statutory minimum wage of €10.20.

The Government asked Low Pay Commission to examine a move towards a living wage earlier this month. It’s due to report in the second half of this year.

Launching the initiative, Tánaiste Leo Varadkar said the pandemic has caused society to redefine frontline and essential workers, and reconsider the value placed on their work. “Traditionally, when we thought of frontline or essential workers, we thought of nurses, doctors, Gardaí or firemen. Now we think also of retail workers, drivers, security guards, transport workers and cleaners.

“One of the legacies of the pandemic must be a more inclusive society that better rewards work and enterprise. That means better terms and conditions for lower paid workers. Moving to a living wage is an important part of this,” he said.

Fórsa general secretary, Kevin Callinan welcomed the development, saying it was not before time. “While the prospect of a living wage in Ireland is encouraging, the fact that the current minimum wage falls below the poverty threshold is nothing short of scandalous.

“The term ‘working poor’ has no place in a modern, just society and cannot be eliminated soon enough. The pandemic has proven the value of all work and those engaged in traditionally low-paid jobs should be properly compensated for their contribution,” he said.

The timing of Government’s decision has been criticised by some business lobby groups, but the Irish Congress of Trade Unions’ social policy officer Dr Laura Bambrick said that, for some, there would never be a good time to have this conversation. “It’s never a big bang. Change is incremental and done over a number of years,” she said.

The Low Pay Commission study will examine the design of a living wage in an Irish context, considering all social and economic implications.

It will also set out a process for Ireland to progress towards a living wage by looking at international evidence, researching different calculation methods, and examining the policy implications of the move.

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