The Government is committed to the progression to a living wage, set at 60% of median hourly wages, during its lifetime.
At the outset, it is important to highlight the Government’s continuing commitment to fair wages for the lowest paid workers in our economy, and the very real progress we have made in raising the National Minimum Wage in recent years by way of substantial increases.
Since 2020, the National Minimum Wage has increased by 40%, from €10.10 to today’s rate of €14.15 an hour.
In 2024, there was a significant uplift of 12%, or €1.40 in the minimum wage, and in 2025 the minimum wage increased by €0.80, an increase of over 6%.
At the start of the year, the National Minimum Wage increased again by €0.65, which represents a further 4.8% increase.
These increases were and are well ahead of inflation and have brought about substantial real wage growth for the lowest paid workers in our economy.
Last year, as part of measures designed to bolster business resilience and support competitiveness, the Government agreed to adjust the timeline for the progression to a living wage until 2029.
This decision should be considered in the context of the recent significant increases in the minimum wage as outlined above, and the progress achieved in reaching a living wage set at 60% of median wages. In their 2025 Annual Report, the Low Pay Commission estimated that the 2025 National Minimum Wage of €13.50 represented 59.97% of median wages using Central Statistics Office Structure of Earnings Survey data, or 56.33% of median wages, using Central Statistics Office Labour Force Survey data.
The Low Pay Commission, when making its recommendation for a National Minimum Wage, has a statutory obligation to have regard to and report on several factors such as changes in earnings, income distribution and the likely economic effects of any recommendation.
The Government carefully considers the recommendations of the Low Pay Commission when determining the appropriate National Minimum Wage and the progression to a living wage.