Ireland: government approves the first increase in the minimum hourly wage

Starting 01 January 2023, more than 164,000 Irish workers will receive an 80 cent increase in the minimum hourly wage to €11.30. Tánaiste (Deputy Prime Minister) Leo Varadkar received government approval for the increase on 14 September, thus definitively paving the way for the creation of the ‘living wage’ (c.f. article No.13100). As a reminder, the ‘minimum wage’ is intended to be replaced in 2026 by the higher ‘national living wage’, which itself will represent 60% of the median wage each year. To get there, a gradual increase in the minimum wage is being planned. “Minimum wage workers are among the hardest working people in Ireland and deserve to be paid more, particularly at a time of rising prices,” said Tánaiste Leo Varadkar. On learning of the increase, the employers’ confederation IBEC, which has never been in favour of raising the minimum wage level, did not make an official statement, but expressed concern in the press about the difficulties that some employers might have in maintaining jobs. For the ICTU national trade union centre however, this first increase in the minimum wage is insufficient. “It fails the test of protecting living standards of the lowest paid workers and also of providing a sustainable foundation to preparing for the living wage,” said Patricia King, ICTU General Secretary.