[Ireland] Cost of living crisis pushes hourly living wage to €13.85

Ireland’s living wage has risen to €13.85 per hour, according to the Living Wage Technical Group (LWTG), BreakingNews.ie reports.

The LWTG is a group of researchers, academics and social justice groups. The increased rate of the living wage puts it €2.55 higher than the national minimum wage of €11.30 and represents a 7.4 per cent increase from the 2021/22 living wage rate of €12.90 per hour.

The LWTG reportedly said the living wage reflects the price pressures faced by employees in the State and the latest increase was determined by changes in living costs and income taxes.

In September, Tánaiste Leo Varadkar announced that the Low Pay Commission had set an indicative living wage for 2023 of €13.10 per hour.

The living wage is planned to be phased in between now and 2026 when it will become mandatory.

The LWTG said that over the past year living costs have increased for almost all the areas of expenditure included in the calculation.

Energy costs (+35 per cent) and transport costs (+12 per cent) reportedly had the greatest increases despite various Government interventions to dampen these impacts.

Large areas of weekly expenditure also grew in cost including clothing (+7 per cent), food (+2.4 per cent), and social inclusion (+7.5 per cent).

Rent increases are again the main factor pushing up the living wage rate; rent increased by an average of 4.3 per cent (almost €8) per week. If housing costs had stayed at 2021 levels, the 2022/23 living wage would be €13.50 per hour, the group said.

The LWTG estimates that approximately one-in-five full-time workers are earning below the living wage.

Robert Thornton - research manager with the Vincentian MESL Research Centre and a member of the LWTG - said, “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.

"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."

Source: BreakingNews.ie

(Quote via original reporting)

Ireland’s living wage has risen to €13.85 per hour, according to the Living Wage Technical Group (LWTG), BreakingNews.ie reports.

The LWTG is a group of researchers, academics and social justice groups. The increased rate of the living wage puts it €2.55 higher than the national minimum wage of €11.30 and represents a 7.4 per cent increase from the 2021/22 living wage rate of €12.90 per hour.

The LWTG reportedly said the living wage reflects the price pressures faced by employees in the State and the latest increase was determined by changes in living costs and income taxes.

In September, Tánaiste Leo Varadkar announced that the Low Pay Commission had set an indicative living wage for 2023 of €13.10 per hour.

The living wage is planned to be phased in between now and 2026 when it will become mandatory.

The LWTG said that over the past year living costs have increased for almost all the areas of expenditure included in the calculation.

Energy costs (+35 per cent) and transport costs (+12 per cent) reportedly had the greatest increases despite various Government interventions to dampen these impacts.

Large areas of weekly expenditure also grew in cost including clothing (+7 per cent), food (+2.4 per cent), and social inclusion (+7.5 per cent).

Rent increases are again the main factor pushing up the living wage rate; rent increased by an average of 4.3 per cent (almost €8) per week. If housing costs had stayed at 2021 levels, the 2022/23 living wage would be €13.50 per hour, the group said.

The LWTG estimates that approximately one-in-five full-time workers are earning below the living wage.

Robert Thornton - research manager with the Vincentian MESL Research Centre and a member of the LWTG - said, “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.

"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."

Source: BreakingNews.ie

(Quote via original reporting)