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Government urged to abolish sub-minimum rates of pay

Currently, the National Minimum Wage Acts allow for lower, or sub-minimum rates for people aged under 20 (file image)
Currently, the National Minimum Wage Acts allow for lower, or sub-minimum rates for people aged under 20 (file image)

The Low Pay Commission has recommended the abolition of all sub-minimum rates of pay, for all employees.

Currently, the National Minimum Wage Acts allow for lower, or sub-minimum rates for people aged under 20.

The minimum wage for those aged 19 is 90% of the prevailing rate, for those aged 18 it is 80% and for those aged 17 and under it is 70%.

Minister for Enterprise, Trade and Employment, Peter Burke said his department will now commission an economic impact assessment and seek legal advice on the Low Pay Commission's recommendations.

"A Government decision on the Low Pay Commission’s recommendations will then be made in due course," Mr Burke said.

"In doing so we will have recourse to the SME test which is a key element of my 15 point business supports package announced last month," he added.

The Irish Congress of Trade Unions (ICTU) said it very much welcomes the unanimous decision of the Low Pay Commission to recommend the abolition of sub-minimum rates.

"This is an issue the trade union movement has been campaigning on for many years and we welcome that the Low Pay Commission which has looked at this matter in a calm and considered way, with all the available data, has unanimously recommended that we abolish these outdated sub-minimum rates," said ICTU General Secretary Owen Reidy.

"Indeed we would expect reasonable employers to also welcome such a move given evidence shows that more than 75% of young workers are actually paid the full minimum wage rather than the sub rates," Mr Reidy said.