National minimum wage goes up to €8.65 an hour

The national minimum wage is to be increased to €8.65 per hour from tomorrow

The national minimum wage is to be increased to €8.65 per hour from tomorrow. Martin Wall, Industry Correspondent, reports.

Minister of State for Labour Affairs Billy Kelleher said yesterday that the rise in the minimum wage this weekend would represent the second occasion that the rate has been increased  this year. The minimum wage rate was increased to €8.30 from the beginning of January.

Mr Kelleher said that the increase this weekend would be the sixth rise in the rate of the national minimum wage since it was introduced in April 2000.

He said that the sub-minimum rates paid to persons under the age of 18 or to first-time job entrants or to those engaged in structured training or study would also increase from this weekend.

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The Department of Enterprise, Trade and Employment says that the new minimum hourly rate for persons in the first year of first employment over the age of 18 is €6.95. In the second year after the date of first employment at age 18 the new rate is €7.79 per hour.

The Minister said that the new increase would "clearly benefit low-paid workers in society, in particular part-time and younger workers".

The Department of Enterprise, Trade and Employment said that anybody seeking information on the increase in the national minimum wage should contact the Employment Rights Information Unit at (01) 631 3131 or 1890 201 615 (lo-call if outside the 01 area) or visit the www. entemp.ie website.

While welcoming the minimum wage increase, the Labour Party spokesman on enterprise and employment, Ruairí Quinn, warned that inflation was outpacing wage increases in all sectors.

Mr Quinn called for the formation of a new cross-party and cross-sectoral group to draw up measures in the weeks ahead to reduce inflation to less than 2 per cent within two years.

"I am delighted to see that the increases in the minimum wage, which the Irish Congress of Trade Unions fought so hard for in the last social partnership negotiations, have come through. We must strive to help those on the lowest wages in particular, as they are the ones being left behind by rising inflation."

He added: "When I left the Department of Finance, inflation stood at 1.5 per cent. It is now running at more than 5 per cent. Wage increases simply aren't keeping pace with this. Urgent action is needed from the Minister for Enterprise, Trade and Employment and the Minister for Finance in order to curb inflation."

Mr Quinn said that in addition to inflationary pressures "our telecommunications infrastructure has been left behind by the broadband revolution" and our education system is "under extreme pressure at all levels".