Dáil Éireann Debate, Tuesday - 29 July 2025
969. Deputy Sinéad Gibney asked the Minister for Enterprise, Tourism and Employment the steps being taken to address the low pay and poor working conditions prevalent in the hospitality sector; and if he will make a statement on the matter. [43892/25]
Amharc ar fhreagraThe Government is committed to a safe working environment, fair treatment and fair wages for all workers. I am aware that a large proportion of minimum wage workers are employed in the hospitality sector.
The National Minimum Wage increased to €13.50 per hour on 1st January 2025, an increase of over 6% which is ahead of projected wage growth across the economy. This followed an increase of €1.40, or 12%, in the National Minimum Wage on 1st January 2024.
The substantial increases in the National Minimum Wage over the last few years show Government’s continuing commitment to fair wages for the lowest paid workers in our economy. The Programme for Government includes the commitment that this Government will recognise the work of the independent Low Pay Commission, ensuring fair wages whilst also supporting the viability of small and medium-sized enterprises.
In November 2022, Government announced that a national living wage would be introduced and set at 60% of hourly median wages, in line with the recommendations of the Low Pay Commission.
The Government is committed to ensuring a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness.
In addition to the recent significant increases in the National Minimum Wage, the Government has introduced a number of significant measures to improve the working conditions of all workers. These include:
Some recent employment law developments are as follows:
• December 2022 saw the introduction of the Payment of Wages (Tips and Gratuities) Act 2022 which obliges employers to distribute tips fairly and to prominently display their tip distribution policy. The Act provides a more secure financial foundation for workers in the hospitality and service industry.
• The introduction of statutory sick leave in January 2023 marked a key policy development for Ireland. For the first time, employees have a statutory right to employer-paid sick leave. From 1 January 2024, the number of statutory sick leave days increased from three to five.
• In 2023, we introduced a new permanent public holiday established in celebration of Imbolc/St. Brigid’s day.
• The European Union (Transparent and Predictable Working Conditions) Regulations came into effect in December 2022. These regulations ensure that employees are given more detailed information about their jobs.
• In April 2023, the Government enacted the Work Life Balance and Miscellaneous Provisions Act, providing all employees with the right to request a remote working arrangement since March 2024.
• The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 was commenced on 1 July 2024 and provided for the establishment of the Employment Law Review Group.
• The Employment (Contractual Retirement Ages) Bill 2025 was published on 1 April 2025. The Bill, once enacted, will deliver a new employment right allowing, but in no way compelling, an employee to stay in employment until the State Pension Age of 66.
Finally, it is important to note that my Department remains strongly supportive of the state’s collective bargaining and wage setting mechanisms, and the important work of the Joint Labour Committees. Ireland is developing an action plan to promote collective bargaining in line with the EU Directive on Adequate Minimum Wages and the Programme for Government commitment.
