Report shows 13.3% increase in Minimum Wage since 2015

Report shows 13.3% increase in Minimum Wage since 2015

Published on 27 March, the Low Pay Commission’s first three-year report shows a cumulative 13.3% rise in the hourly rate of the national minimum wage since 2015.

This means that since 2015 the increases in the minimum wage outstripped both inflation and wage growth. The minimum wage is now 13% higher than it was in January 2015, while hourly wages are 8% higher and the overall cost of living is only 2% higher. If the minimum wage were pegged to inflation from 2015 to 2018 it would be €8.72 and if it were pegged to hourly wages it would be €9.11.

According to Eurostat, Ireland has the second highest monthly minimum wage in the EU after Luxembourg. In real terms (adjusting for inflation), Ireland’s minimum wage increased by 9% from 2015-2018. Many European countries experienced a larger increase in real terms, but this is happening from a very low base. For countries with a minimum wage of more than €900 per month, Ireland had the second largest real increase from 2015-2018 after the UK. For many countries starting from a high base (e.g. Luxembourg, Belgium and France), the minimum wage has fallen in real terms.

Low Pay Commission three year report (2015-2018)

The National Minimum Wage (Low Pay Commission) Act 2015 requires the LPC to report generally on the operation of the Act once every three years, including on the impact of any orders made under the Act on low pay, income distribution and employment costs. This report reviews the operations of the Commission for its term of office from 2015 to 2018, providing a background to the Commission, its membership and composition, work undertaken during its first three year term and the impact of its recommendations on a range of economic factors.

A copy of the report can be accessed here.