Dáil Éireann Debate, Tuesday - 28 April 2026
171. Deputy Paul Murphy asked the Minister for Enterprise, Tourism and Employment if he has concerns in relation to the increased use of youth subminimum wages by employers; and if he will make a statement on the matter. [30446/26]
View answerAs the deputy is aware, the National Minimum Wage Acts allow for lower, or subminimum rates of the minimum wage for those employees aged under 20. Those aged less than 18 years can be paid 70 per cent of the full minimum wage rate, while those aged 18 years and 19 years can be paid 80 and 90 per cent of the full rate, respectively.
Since the current system of youth rates is based on a percentage of the full minimum wage; when the minimum wage increases, these subminimum rates also increase, with young people in receipt of these rates seeing a commensurate increase in their wages.
Since 2020, the National Minimum Wage has increased by 40%, from €10.10 to today’s rate of €14.15 an hour.
In 2025, there was a significant uplift of 6.3%, or €0.80 in the minimum wage, and this year the minimum wage increased by €0.65, an increase of 4.8%. Both of these increases were ahead of inflation and projected wage growth and have brought about substantial and real wage growth for the lowest paid workers in our economy.
Our current rate of €14.15 an hour means that Ireland now has the second highest monthly minimum wage in the EU, second only to Luxembourg, and among the highest in the world. When adjusted for purchasing power standards, we have the fifth highest minimum wage in the EU.
Last year, as part of measures designed to bolster business resilience and support competitiveness, the Government made agreed to defer a decision on subminimum youth rates until 2029.
This decision should be considered in the context of the significant increases in the minimum wage and wider improvements in statutory employment protections.
A recent study produced under the Low Pay Commission ESRI Research Partnership found that the incidence of those under the age of twenty paid subminimum youth rates has increased from 20% in 2019 to between 26% and 30% in the first half of 2025.
It is important to put this figure into context. This means that over 70% of those that could be paid youth rates paid on the full minimum wage rate or higher. According to the ESRI report, youth rate employees represent approximately 1% of all employees and over 90% of those on subminimum youth rates work part time.
While the incidence of subminimum youth rate employment remains low, it is important to note that these employees tend to be concentrated in a small number of sectors. According to the most recent Low Pay Commission report, the Accommodation and Food and Retail sectors employ nearly 55% of those who report earning the National Minimum Wage or less.
The Government remains committed to ensuring fair wages for youth workers. The recent increase in the usage of subminimum youth rates merits continued monitoring before making a decision on this important issue in 2029.
The Government will continue to closely monitor the use of subminimum youth rates to ensure they do not undermine fair pay or progression for young workers, while also safeguarding employment opportunities as part of the scheduled review in 2029.
