Living wage should rise to €14.80 per hour – technical group

September 28, 2023

The reference hourly living wage rate should rise to €14.80 per hour, according to the Living Wage Technical Group (LWTG).

This is an increase of 6.9%, or €0.95, compared to the previous reference rate of €13.85 per hour.

The living wage is seen as the minimum rate required for a full-time worker to afford the goods and services that people have agreed are essential for enabling a life with dignity.

The LWTG said the increase in the living wage is driven by the rising cost of living over the last year, particularly for energy, food and rent.

Last year, the Government agreed to the introduction of a new national living wage to replace the minimum wage by 2026.

It will be phased in over a four-year period and will be set at 60% of the hourly median wage.

In 2023, it is estimated that 60% of median earnings equates to around €13.10 per hour.

The minimum wage increased by 80 cent from 1 January 2023 to €11.30 per hour.

This will be followed by gradual increases until the minimum wage reaches 60% of hourly median earnings.

The Living Wage Technical Group uses a different method to calculate the living wage and bases it on the rationale that full-time employment should at least provide for a socially acceptable minimum standard of living for a single person without dependents.

Robert Thornton is Research Manager with the Vincentian MESL Research Centre and a member of the LWTG.

“The Republic of Ireland Living Wage was established in 2014 and is part of a growing international set of similar figures which reflect a belief across societies that individuals working full‐time should be able to earn enough to enjoy a decent standard of living and meet minimum essential living costs,” Mr Thornton said.

“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,” he added.

The Living Wage Technical Group is supported by the Nevin Economic Research Institute, SIPTU, Social Justice Ireland, Society of St Vincent de Paul, TASC, Unite the Union and the Vincentian MESL Research Centre at SVP.

Lidl Ireland said today that it would commit to the new living wage rate of €14.80.

The supermarket chain said it will invest €3 million to introduce the change which will benefit 2,000

Article Source: Living wage should rise to €14.80 per hour – technical group – Brian O’Donovan – RTE

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