The Living Wage Technical Group (LWTG) has suggested that the reference hourly living wage rate be increased to €13.85 per hour, a 7.4% increase over last year’s suggested rate of €12.90 per hour.
The LWTG is a group founded in 2014 by trade unions and NGOs to develop a methodology for calculating the living wage, which is defined as the minimal amount individuals need to live and partake in Irish society.
Tánaiste and Minister for Enterprise, Trade, and Employment Leo Varadkar said this month that the Government has approved the Low Pay Commission’s suggestion to raise the national minimum wage to €11.30 per hour beginning January 1, 2023.
This represents an increase of 80 cents, or 7.6%, above the current minimum wage of €10.50 per hour.
The Tánaiste also announced at the time that the Low Pay Commission has established an approximate living wage of €13.10 per hour for 2023.
The living wage is expected to be phased in between now and 2026, when it would become mandatory.
The LWTG said, however, that the living wage rate should be €13.85 per hour due to the rising cost of living, with rent increases cited as the main factor.
“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,” said Robert Thornton, 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.