Labour Court: Minimum wage should go up by a euro
The Labour Court recommended last night that the national minimum hourly rate of pay be increased by a euro.
Minister for Labour Affairs Tony Killeen confirmed he received the court’s recommendations to raise wages to €8.30 per hour from January 1, 2007 and to €8.65 from July 1, 2007.
“I thank the Labour Court for their consideration of this matter, which I understand has included a thorough consultation process,” Mr Killeen said.
“I am conscious of the very tight deadlines to meet the wish of the social partners, as expressed in the Partnership Agreement Towards 2016, that the minimum wage be adjusted with affect from 1 January 2007 and I appreciate the court’s commitment in considering the relevant issues and completing the process in this timeframe.”
The national minimum wage was introduced in Ireland in April 2000. The hourly rate was then set at IR£4.40 (€5.59). Since then there have been four increases with the current rate of €7.65 per hour from May 1, 2005.
Mr Killeen said under the National Minimum Wage legislation he would also be taking into account the impact the proposed rate may have on employment and the overall economic conditions in the state.
Employers’ body IBEC said consumers should be aware the proposed increase would push up the costs of goods and services.
IBEC director Brendan McGinty said the proposed increase exceeded the terms of the present national agreement, Towards 2016, and was in excess of inflation.
“Even before this proposed adjustment, in terms of after tax income, Ireland already has the highest rate of national minimum wage across Europe,” Mr McGinty said.
