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Living wage

Living Wage group recommends 60c rise to €12.90 an hour due to rent increases

The Living Wage Technical Group (LWTG) has said the increase is being driven by higher rents, transport and energy costs.

THE LIVING WAGE in Ireland should rise by 60 cents to €12.90, the group which calculates it has recommended. 

A ‘living wage’ – currently deemed to be €12.30 per hour – is defined as the minimum income necessary for a single adult in full-time employment to meet their basic needs and afford an acceptable standard of living.

It is different from the current national minimum wage, which is €10.20 per hour.

The Living Wage Technical Group (LWTG) has said the increase is being driven by higher rents, transport and energy costs.

The LWTG said rents account for 3.9 percentage points of the 4.9% increase. In Dublin, housing costs now account for 64.7% of a ”Living Wage’ net salary, based on the 2021/22 rate.

“[The Living Wage] represents the minimum required to meet physical, social and psychological needs, and enable a life with dignity,” said Robert Thornton, VPSJ Senior Research and Policy Officer and a member of the LWTG.

“Having an income below this standard of living means doing without goods and services which are essential for taking part in the norms of everyday life in Ireland.”

The group added that energy prices for home heating and transport have also risen and this has increased the upward pressure on costs for workers.

Food, clothing and car insurance, however, decreased in price, off-setting to some degree these price increases.

The Programme for Government committed to progress to a living wage over the lifetime of the Government.

In January, the Tánaiste asked the Low Pay Commission to examine the issue and make recommendations to Government on how best to achieve this commitment.

The commission will investigate how an increase to a living wage could compare internationally, as well as its impact on the cost of labour, social welfare, health, education and housing.

It will also consider he possibility of introducing lower supplementary welfare payments if a living wage were to lead to a decrease in poverty among working people.

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