The Irish Small and Medium Enterprise Association (ISME) said it is 'nonsensical' to suggest that subminimum rates of pay for young workers are discriminatory.
The minimum wage is €11.30 an hour for workers aged 20 and older but lower rates apply to people aged 17 - 19.
The Low Pay Commission is currently reviewing whether subminimum youth rates should be retained, removed or adjusted.
In its submission to the Commission, ISME rejected suggestions that the rates are unfair and discriminatory.
"This is nonsensical and fails to acknowledge the fact that underage workers bring little or no experience to the table in what may be their first employment," ISME said in its submission.
"They require training and supervision, reducing their productivity."
"Were the sub-minimum rates to be removed, this would discourage the employment of younger workers by employers," ISME said.
In its submission to the Low Pay Commission, the Irish Congress of Trade Unions (ICTU) described subminimum youth rates as outdated, out of line with EU norms and grossly unfair to young workers and good employers.
"There is no justification for two workers doing the same work and liable for the same tax and PSRI on their earnings being paid a different rate for the job just because of their age," ICTU said in its submission.
"It gives unscrupulous employers a competitive advantage over decent employers and any justification, if one ever existed, is no longer applicable," ICTU said.
The Low Pay Commission is expected to recommend to the Government that it increases the minimum wage next year by €1.40 an hour, bringing the rate from €11.30 to €12.70.
Last year, the Government announced plans to introduce a new national 'living wage' to replace the minimum wage by 2026.
It will be phased in over a four-year period starting this year and will be set at 60% of the hourly median wage.
In 2023, it is estimated that 60% of median earnings would equate to approximately €13.10 per hour.
The minimum wage increased by 80c on 1 January, 2023.
This will be followed by gradual increases until the minimum wage reaches 60% of hourly median earnings.
