165,000 people are earning minimum wage currently.
A 12% increase in the national minimum wage will be proposed by the Low Pay Commission to the government for next year.
The increase is more than twice the predicted rate of inflation for 2023 and would increase the hourly minimum wage to €12.70, an increase of €1.40 an hour on the current rate of €11.30.
The proposal will mean that those working 39 hours a week would earn an additional €54.60 per week from the start of 2024.
As reported by The Irish Times, the increase would be well above the Central Bank’s predicted 5.3% headline inflation rate for 2023 and the commission’s 7.5% recommended increase last year, which was implemented by the government.
2023’s increase went from €10.50 to €11.30 on January 1st.
The reason for the higher-than-inflation increase comes as the commission seeks to adjust the minimum wage to meet the Government’s living wage objective, which is based on 60% of median gross earnings across the economy.
The government aims to have the living wage implemented by 2026 and has committed to increasing the minimum wage by that date.
Hundreds of thousands directly affected by minimum wage increases
Currently, there are around 165,000 people earning the National Minimum Wage, a group disproportionately made up of women, young people, people with disabilities, and migrant workers.
Younger people, those aged 17, 18, and 19, currently earn 70%, 80%, and 90% of the minimum wage respectively.
If the proposal is implemented by the government, which it is expected to be, 17-year-olds would earn €8.89, with 18-year-olds getting €10.16 and 19-year-olds getting €11.43.
The reduced rates for people under 20 are currently being reviewed by the Low Pay Commission, with submissions being accepted.
This article originally appeared on JOE
Header image via Getty
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