“We want to reward work and ensure that work pays more.”
Tánaiste Leo Varadkar has confirmed plans to increase the National Minimum Wage to €11.30 per hour and announced that the indicative Living Wage for 2023 would be set at €13.10 per hour.
The 80 cent increase to the minimum wage is set to impact 164,700 people in Ireland, with those working a 39-hour week set to see an increase of €31.20 a week.
“We want to reward work and ensure that work pays more,” said Varadkar.
“Minimum wage workers are among the hardest working people in Ireland and deserve to be paid more, particularly at a time of rising prices.
“I hope that this increase, along with the other measures that will be announced as part of Budget 2023, will help to protect the lowest paid workers from the rising cost of living.
“Our objective is to put more money in people’s pockets and reduce the cost of living.
The National Living Wage, as recommended by the Low Pay Commission as a wage that makes possible a minimum acceptable standard of living, is set to be phased in from 2023 onwards and will replace the minimum wage entirely and become mandatory in 2026. The current Living Wage stands at €12.90 per hour and will increase by 20 cents next year.
The wage is planned to be revised annually as a benchmark for employers and will be set at 60% of the median wage in Ireland.
“I want to move from a minimum wage to a living wage so that work pays more,” the Tánaiste added.
“Earlier this year I received the Commission’s recommendations on phasing in a living wage for Ireland. And in June I outlined a proposal to introduce a living wage for all employees.
“The Low Pay Commission has recommended setting a fixed threshold at 60% of the median wage.”
Varadkar also confirmed that, as of 1 January 2023, all employees will be entitled to sick leave paid for by their employer along with illness benefits from the State.
“Nobody should have to go to work when they are sick for fear of having no income,” Varadkar said.
“It’s not good for them or their co-workers. For the first time, there will be an entitlement for almost all employees to paid sick leave.”
The plan to introduce the new wage packets and sick leave come ahead of a “multibillion euro” budget from the Government that aims to assist people dealing with the cost of living crisis.
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