It was designed to prevent the exploitation of low paid workers and it has done that, the ESRI observes, by reducing wage inequality. Following the recession, the statutory minimum wage remained unchanged for nine years until the Low Pay Commission recommended a 6 per cent increase, to €9.15, in 2016. The ESRI analysis concentrated on the direct and indirect effects the 2016 minimum wage increase had on the distribution of hourly wages and household incomes. Ireland has one of the largest percentages of low paid employees within the euro zone, making up one-quarter of the workforce. Because of that finding, the use of a minimum wage policy was challenged as being an efficient way to tackle poverty.

Source: The Irish Times March 07, 2019 00:00 UTC