19 Aug 2022

Living Wage Group calls for 60c increase due to rising rent costs

Living Wage Group calls for 60c increase due to rising rent costs

Living Wage Group calls for 60c increase due to rising rent costs

The Living Wage Technical Group (LWTG) has recommended the living wage in Ireland should rise by 60c taking it from €12.30 per hour to €12.90.

The 'living wage' 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.

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This is different from the National Minimum Wage, currently based at €10.20 per hour, which is not based on the cost of living, but rather evidence based rate of pay which is grounded in social consensus and is derived from Consensual Budget Standards research which establishes the cost of Minimum Essential Standard of Living in Ireland today.

The LWTG has said the increase is being driven by higher rents, transport and energy costs. Food, clothing and car insurance, however, decreased in price, off-setting to some degree these price increases.

“[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.”

In January, Tánaiste Leo Varadkar 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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