Subminimum Wage Debate in the Oireachtas

Last Wednesday, 18 September, the Joint Oireachtas Committee on Enterprise, Trade and Employment held a discussion about the Equal Pay (for Young Workers) Bill 2022.  More specifically, the committee scrutinised the Low Paid Commission’s recommendation on to abolish subminimum rates for those under the age of 20.  The text of the bill is also called for the subminimum rates to be abolished.

At the Committee, officials from the Department of Enterprise, Trade & Employment informed the TDs and Senators present that Minister Peter Burke, TD has requested the need for a further study of subminimum rates and its impact on businesses, particularly SMEs. This was followed by a series of questions from committee members.  

Most notably, Louise O’Reilly, TD, Sinn Fein Spokesperson for Workers and Business claimed that no academic evidence has been presented by employers regarding justification for placing experienced staff on a higher wage rate versus inexperienced staff, under the age of 20. She further stated that there was no evidence about how removing the subminimum rates will negatively impact employers.  

During the proceedings there appeared to be growing support from members to treat 18- and 19-year-olds differently than 16- and 17-year-olds in relation to subminimum wage rates.  Predictably, various left-wing TDs have called for the rate to be abolished and questioned the need for further studies. The department officials confirmed that the consultancy group INDECON is doing an impact assessment on the impact of subminimum rates and that the process will take a few months to complete.

For questions on this topic, please contact SFA Public Affairs Lead, Jonathan McDade - Tel: 01 605 1688 or Email: jonathan.mcdade@sfa.ie.