Turlough O' Sullivan, Director General, IBEC and David Begg, General Secretary, ICTU.

Tony Killeen T.D, Minister for Labour Affairs today announced that he has accepted the Labour Court recommendation to increase the national minimum wage from 1 January, 2007 to €8.30 per hour and from 1 July, 2007 to €8.65.  The Minister will give effect to the increases by Statutory Order.

The sub-minimum rates which may be paid to certain categories of employee, for instance to persons under the age of 18, to first time job entrants or to those engaged in structured training or study will also be increased pro rata from these dates.

Commenting on the decision to increase the hourly rate, the Minister said: “I am happy that it has been possible to complete the process in time to meet the deadline of 1 January 2007 for the adjustment of the minimum wage as set out by the Social Partners in the Social Partnership Agreement Towards 2016. The inability of the Social Partners themselves to agree the increase made for particular pressures in this regard.”

“It has been 20 months since the minimum wage was last increased. Having regard to this and to the period for which these new rates can be expected to remain in force I believe that these increases provide for a reasonable annual rate of increase in the minimum wage over the period 2006 to 2008 as a whole.”

However, I am aware of concerns that adjustments of the minimum wage with increases that imply an element of ‘catching up’ can cause unwelcome uncertainty for employers and, indeed, for employees. I intend raising with the Social Partners how the adjustment process might be better managed to meet these concerns," Kileen said.