2nd December 2016
The Minister for Employment and Small Business, Pat Breen TD, is encouraging those with an interest in the national minimum wage to make submissions to the Low Pay Commission as it begins a new phase of work.
The Low Pay Commission is an independent body set up in 2015 whose main function is to advise the Government on the appropriate rate of the national minimum wage.
The Low Pay Commission is seeking submissions on the minimum wage itself in preparation for submission of its third recommendation on the appropriate rate of the minimum wage in July next year.
Minister Breen has also asked the Low Pay Commission to review the rates for board and lodgings, which are reckonable as part of the national minimum wage. In determining an employee’s average hourly rate, certain reckonable components may be taken into account. For example, if an employer provides an employee with full board and lodgings or lodgings only or full board only, a monetary allowance can be included as part reckonable pay. As these rates were set in 2000 and were not altered since then, the Commission was requested to examine and advise on an appropriate adjustment to the rates, taking into account the time that has passed since the rates were first set.
Minister Breen said, “We have fundamentally changed the way that the national minimum wage is set through the establishment of the Low Pay Commission and I am pleased that this independent body is now moving onto its next phase of work. I would encourage anyone with an interest in the National Minimum Wage or the issue of the board and lodgings rates to make their views known to the Low Pay Commission. All these submissions will enable the Low Pay Commission to be fully informed when making their recommendations to me. ”
As part of the public consultation process on the minimum wage and the board and lodgings rates, the Low Pay Commission placed advertisements in national newspapers yesterday (Thursday 1st December 2016) seeking submissions. All submissions should be sent to The Low Pay Commission, Room 207A, Davitt House, Adelaide Road, Dublin 2. D02 TW27or email secretarylpc@djei.ie
For more information log onto www.lowpaycommission.ie
The closing dates for the submissions are as follows:-
- in relation to board and lodging allowances provided for under the National Minimum (Hourly Rate of Pay) Order 2000 - Tuesday 10 January 2017
- in relation to the national minimum wage - Thursday 9 February 2017.
ENDS
For more information contact press.office@djei.ie - 01 631 2200
Editors’ Notes:
Current Rates for Board and Lodgings
Under the National Minimum Wage Act 2000 (National Minimum Hourly Rate of Pay) Order 2000 (SI No. 95/2000) certain reckonable components may be taken into account for all workers to determine an employee’s average hourly rate. The Act provided or the following amounts:
- €54.13 for board and lodgings per week, or €7.73 per day;
- €32.14 for board only per week, or €4.60 per day;
- €21.85 for lodgings only per week, or €3.14 per day.
Thus, if an employer provides an employee with full board and lodgings, or lodgings only or full board only, a monetary allowance can be included as reckonable pay.
The inclusion of this provision in the National Minimum Wage legislation was recommended by the Inter-Departmental Group on Implementation of a National Minimum Wage. It was the view of the Inter-Departmental Group at the time that the monetary value of the allowances for the purpose of the National Minimum Wage would not be set at market value.
National Minimum Wage
The current national minimum hourly rate of pay for an adult worker is €9.15. This rate came into effect on January 1st last following Government acceptance of the Low Pay Commission’s first recommendation of July 2015 to increase the rate from €8.65 per hour.
The second report from the Low Pay Commission submitted to Cabinet on July 19th recommended a rate of €9.25 as the new national minimum hourly rate. The recommendation was approved by the Government and will come into effect on the 1st of January 2017.
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