Government urged to axe lower minimum pay rates for young people

Lower pay rates for young people should be axed when a new national living wage replaces the minimum wage, the Government has been warned.

In a submission to the Department of Enterprise, the Irish Congress of Trade Unions (ICTU) disagrees with a Low Pay Commission recommendation, and sees “no justification” to continue age-based rates.

“A lower rate for younger workers working alongside older colleagues and facing the same costs cannot be described as a living wage,” it said.

The Low Pay Commission recommended that youth rates continue to apply when a new national living wage comes into force.

There are currently different minimum pay rates for younger people, depending on their age. The minimum wage is €10.50 an hour for those aged 20 and over, €9.45 an hour for 19-year-olds, €8.40 an hour for 18-year-olds and €7.35 an hour for under-18s.

Enterprise Minister Leo Varadkar has proposed that the new living wage will replace the €10.50-an-hour minimum wage in four years.

“Progress to a living wage should involve the abolition of reduced rates for younger workers,” the submission said.

ICTU said research by NUI Maynooth does not explore the evidence for age-based eligibility.

The submission stated that Ireland is one of only five EU states to continue to have age-based rates in their national minimum wages. They are Belgium, Luxembourg, Malta, the Netherlands and Ireland.

European law allows for age discrimination in minimum wages, but only where the discrimination fulfils a “legitimate aim”, it added.

“This includes legitimate employment policy, labour market and vocational training objectives. Justification of discrimination must be specific and based on evidence,” it said.

ICTU disagrees with the commission, but notes it recommends a report to examine retaining, removing or expanding youth rates.

The trade union umbrella body disagrees with a government “strawman” proposal timeline of four years for introducing a living wage. It said it does not go far enough to honour the Programme for Government pledge to progress to a living wage over its lifetime.

Reporting: The Irish Independent