Committee to discuss scrapping age-based minimum pay rates
A bill that seeks to abolish age-based sub-minimum pay rates for younger workers will be discussed today by the Oireachtas Committee on Enterprise, Trade and Employment.
Current legislation allows for lower or sub-minimum rates for people aged under 20.
The minimum wage for those aged 19 is 90% of the prevailing rate, for those aged 18 it is 80% and for those aged 17 and under it is 70%.
The minimum wage stands at €12.70 per hour, therefore the current sub-minimum wage rate for workers aged 19 is €11.43, for workers aged 18 is €10.16 and for those aged under 18 is €8.89.
In June, the Low Pay Commission recommended the abolition of the sub-minimum rates and the Department of Enterprise has commissioned an economic impact assessment on the issue.
Trade unions have welcomed calls for the scrapping of sub-minimum wage rates.
Business groups, however, have pointed out that employers in the retail and hospitality sector are not allowed to employ young people to sell age-restricted products such as alcohol, tobacco and vaping products.
Groups add that employers would be much less inclined to hire young people at the same rate as adults when they cannot carry out the same functions or have the same availability.
The Oireachtas Enterprise Committee will today hear from officials from the Department of Enterprise, Trade and Employment.
“The department is undertaking an economic impact assessment of the Low Pay Commission’s recommendations to abolish sub-minimum youth rates,” said Committee Cathaoirleach Maurice Quinlivan.
“It is also considering the requirements of the EU Directive on Adequate Minimum Wages which is due to be transposed into Irish legislation before the end of the year.”
“The directive aims to ensure that workers across the EU are protected by adequate minimum wages. The directive does not prohibit the use of sub-minimum rates but requires Member States to ensure the objective justification of these rates,” Mr Quinlivan said.
Article Source – Committee to discuss scrapping age-based minimum pay rates – RTE
