There's currently over €2 in the difference in the living and minimum wage in Ireland.
The Government has asked the Low Pay Commission to look at the design of a living wage for workers in an Irish context.
As part of its work, the commission will consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could progress towards a living wage.
The living wage is an "income floor", according to Social Justice Ireland.
The think tank said it represents a figure which allows employees to afford the essentials of life while earnings below the living wage suggest employees are forced to do without certain essentials so they can make ends meet.
It estimates the living wage in Ireland is €12.30 per hour while the current minimum wage in Ireland is €10.20 per hour.
The current Programme for Government commits to “progress to a living wage over the lifetime of the Government” and on Wednesday the terms of reference for the report were noted by Cabinet.
“The pandemic has caused us to redefine frontline or essential workers and to reconsider the value we place on their work and the reward they should get for that work," Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said.
“Traditionally, when we thought of frontline or essential workers, we thought of nurses, doctors, Gardaí or firemen. Generally, people working in the public service with relatively well paid, secure and pensionable jobs. Now with think also of retail workers, drivers, security guards, transport workers and cleaners.
“One of the legacies of the pandemic must be a more inclusive society that rewards work and enterprise better. That means better terms and conditions for lower paid workers. Moving to a living wage is an important part of this. Of course, in doing so we need to recognise that many businesses are closed and are now loss-making, so we must do it in way that that does not cost jobs or cause people’s working hours to be reduced. That would be counter-productive.
“Although the Low Pay Commission has done some initial work, we now have the agreed terms of reference to allow the Commission formally begin its research and advise us on an appropriate model in an independent and evidence-based way so that we can move towards a living wage over the period of this Government."
