The government has agreed to introduce a new national “living wage” to replace the minimum wage by 2026.
It will be phased in over a four-year period starting next year and set at 60% of average hourly wages.
In 2023 it is estimated that 60% of the average wage would be equivalent to around 13.10 euros per hour.
The minimum wage will increase by 80 cents from 1 January 2023 to 11.30 euros per hour.
This will be followed by gradual increases until the minimum wage reaches 60% of the average hourly wage.
In 2021, there were 164,000 people earning the national minimum wage.
Once the living wage takes effect in 2026, subject to an assessment of the impact of the change, the Low Wage Commission will advise on the practicalities of gradually increasing the target threshold towards 66% of average hourly earnings.
“Extensive research and consultation took place, including with employer and worker representative groups, unions and the public, in order to ensure we introduce the living wage in a way which will benefit workers whilst also being manageable for businesses,” said Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, reports RTE.
“It’s important to get the balance right,” he added, reports RTE.
The living wage is defined as the minimum amount people need to live and participate in Irish society.
The Living Wage Technical Group (LWTG), which is supported by unions and charities, said last month that the living wage should rise to €13.85 an hour to reflect the rising cost of living.
Tell us your thoughts in the Facebook post and share this with your friends.