Dáil Éireann Debate, Tuesday - 16 June 2026
208. Deputy Richard Boyd Barrett asked the Minister for Enterprise, Tourism and Employment if he is planning to abolish sub-minimum wages and increase the national minimum wage to a living wage; and if he will make a statement on the matter. [45622/26]
Amharc ar fhreagraAs the Deputy is aware, the National Minimum Wage Acts allow for lower, or sub-minimum rates of the minimum wage for those employees aged under 20 years of age. 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 sub-minimum youth 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.
Last year, as part of measures designed to bolster business resilience and support competitiveness, the Government made agreed to defer a decision on sub-minimum 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 measures.
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.
The Government has committed to progressing to a living wage, set at 60% of median hourly earnings, by 2029. This will be achieved via incremental adjustment to the National Minimum Wage. Our next steps in this regard will be informed by the recommendations of the independent Low Pay Commission. The Commission’s recommendations for the 2027 National Minimum Wage are due to be submitted to me next month.
The aforementioned significant increases in the National Minimum Wage demonstrate Government’s commitment to progressing to a living wage.
