Publication
Submission to the Low Pay Commission on the minimum wage
Online version
A wage that meets basic needs
The submission argues that a person working 39 hours a week should be able to meet the cost of accommodation, utilities, food, clothing, transport, childcare and other essential living expenses. It says the 2019 minimum wage of €9.80 an hour, or €382.20 for a 39-hour week, did not meet that test.
The paper proposes replacing the minimum-wage concept with a living wage. It cites the 2018 Living Wage rate of €11.90 an hour, calculated from research into the Minimum Essential Standard of Living. An annually updated evidence-based rate, it argues, would respond directly to changes in essential costs.
Poverty among people in work
The submission uses then-current figures from Social Justice Ireland and the Central Statistics Office. It records 760,000 people living in poverty, including about 230,000 children, and approximately 109,000 people in employment who were living in poverty. These figures are historical and should not be read as current statistics.
It also highlights the high poverty rate for one-parent households and notes that women formed most one-parent households and a large share of precarious and minimum-wage workers. The authors therefore describe a statutory rate below the living wage as having a particularly discriminatory effect on women.
Housing costs
Housing is presented as the largest household cost for many workers. The submission cites an average monthly rent of €1,334 for a one-bedroom home and gives rents for three-bedroom homes in Dublin 8, Dublin 12 and Dublin 13. Its worked example places the cost of one room at about €166 a week, or 43 per cent of the full-time minimum wage then in force, before utilities.
The paper links these costs to overcrowding, reliance on state support for private rent and homelessness. It argues that wage policy cannot be assessed without considering actual housing costs.
Pay distribution and public subsidy
The final section contrasts minimum-wage income with executive pay reported by the Irish Congress of Trade Unions. It argues that large differences between chief executive and worker pay weaken claims that employers cannot afford higher wages.
The submission concludes that low-paying employers are indirectly subsidised through Family Income Supplement, housing support and other state payments. Its recommendation is to adopt the living-wage model so that full-time work provides a minimum acceptable standard of living.
Download the publication
The PDF is 3 pages and 0.16 MB.