The Irish government has pushed back the timeline for implementing a living wage by three years, with the measure now set to take effect in 2029 rather than the previously planned 2026.
Enterprise Minister Peter Burke confirmed the delay on Tuesday, explaining that immediate implementation would have required wage increases of 8-9% this year, which he described as “unsustainable.” The living wage, calculated at 60% of the median wage, currently stands at €14.75 per hour, compared to the minimum wage of €13.50.
“The aim is to achieve a living wage under the current Government by 2029,” Burke stated. “At the moment, we have increased the minimum wage by 29% since January 2022.”
Burke highlighted economic concerns behind the decision, noting that wage growth is currently around 3.5-4% while inflation sits at 1.7%. He specifically mentioned pressures facing retail and hospitality sectors, suggesting that a rapid wage increase could threaten full employment.
According to The Irish Examiner, the announcement came alongside plans to accelerate a new competitiveness action plan in response to US tariffs. Despite the delay in the living wage implementation, Burke rejected suggestions that the government was rolling back workers’ rights, pointing to other initiatives including the auto-enrolment pension system, though he acknowledged this program has also faced technical delays.
The government also confirmed there will be no increase in statutory sick days, which will remain at five rather than increasing to seven as previously considered.