Cabinet backs 10c increase to minimum wage in the Budget

Samantha McCaughren THE Cabinet has agreed to increase the minimum wage by 10c to €9.25 an hour, resisting calls to make a more significant increase to the current rate in this week’s Budget, according to a number of sources.

This increase is in line with the recommendation of the Low Pay Commission which recently backed a 10 cent rise in the minimum wage, benefiting 70,000 workers.

However, trade unions and TDs, including Minister John Halligan, had called for a larger increase.

Among the proposals was the introduction of a so-called ‘Living Wage’ of €11.50 per hour.

The decision to bring in a rise of just 10c, which was recommended by jobs minister Mary Mitchell O’Connor, will be welcomed by employers’ groups who opposed proposals to significantly alter the current rate.

The issue was of particular concern among companies in the hospitality and retail sectors which are already worried about the impact of Brexit in the coming months.

At the start of the year an increase of 50c was intro- duced, which equated to a rise of just under 6pc.

However, the 10c increase will come as a disappointment to trade union groups and workers.

Under the new rate, someone working 39 hours a week would see their income increase by €3.91 a week, up to €360.75

The Government is open to further increases in the minimum wage, but will be guided by further reports from the Low Pay Commission.

The Programme For Government made a commitment to increase the minimum wage to €10.50 by 2020.