Headed by former AIB senior executive Donal de Buitléir, the commission has been established to advise the Government on the appropriate rate of the national minimum wage on an annual basis. It will travel the country talking to workers and employers, gathering information.

Until now, the national minimum wage could be changed following a recommendation in a national agreement, a recommendation by the Labour Court or unilaterally by the Minister.

The members of the commission represent a variety of stakeholder interests, and includes the general secretary designate of the ICTU, Patricia King. The commission is expected to consider a range of issues in making their recommendation, including:

• Changes in earnings since the minimum wage was last increased in 2011
• Unemployment and employment rates generally
• Expected impact of a change to the minimum wage on employment, the cost of living and national competitiveness
• Changes in income distribution
• Currency exchange rates

It will be asked to consult with appropriate interest groups and people, including directly with workers who are on the minimum wage, and employers in sectors associated with low pay. It will also examine relevant data from organisations like the CSO and be able to commission research to fill in any data gaps.

The current rate of the National Minimum Wage is €8.65. It was last increased in July 2011, when the Fine Gael/Labour coalition reversed a €1 cut to the rate which was imposed by the previous Government.

Oireachtas hearings on low pay and the living wage

Dr Michael Collins of the Nevin Economic Research Institute (NERI) told an Oireachtas hearing this week that a rise of €1 to the national minimum wage would mean a bump of €2,033 per annum for a full-time worker on the minimum wage.  Dr Collins contested a claim, made by Ibec economist Fergal O’Brien,  that the purchasing power of the minimum wage is now 20% greater than what it was in 2000.

Dr Collins told the Oireachtas committee that a process to introduce a ‘living wage’ of €11.45 per hour would be gradual and voluntary. He recommended that sectors of the economy that can afford it should create ‘living wage’ zones, such as at the IFSC and in the local authority sector.

He told the committee that where the living wage has been introduced in other jurisdictions, the local authority sector has embraced the concept, as elected officials are in the best position to lead by paying their own employees the living wage rate. He said also that the living wage could be lowered, depending on other related circumstances, such as improvements in public services.