The minimum wage for those aged 19 and under is less than the minimum wage for those aged 20 and over, given that sub-minimum, or age-based, pay rates are in force. The latest figures available from the Central Statistics Office, CSO, using the labour force survey quarter 3 of 2022, show that there are an estimated 91,000 employees aged between 16 and 19. Of these, the CSO estimates 19,600 earn less than the full minimum wage. In most cases, 16,400 to be precise, this is because they are earning the relevant sub-minimum, age-based rate of the national minimum wage. The Low Pay Commission previously undertook a review of the sub-minimum, or youth, rates as part of its work programme and recommended, in 2017, abolishing the training rates and simplifying the youth rates by moving to age-related, as opposed to experience-based, rates.
The Low Pay Commission's recommendations were accepted by the Government and were introduced as part of the Employment (Miscellaneous Provisions) Act 2018. The commission commissioned its own research, carried out by the Economic and Social Research Institute, ESRI, and consulted widely on this matter before making its recommendations. As some time has passed and we want to ensure our legislation will be fit for purpose, last year, the then Tánaiste and Minister for Enterprise, Trade and Employment requested the Low Pay Commission to again examine the issues relating to retaining or removing the youth rates and to make recommendations on the subject. To inform its work, the commission has asked the ESRI to conduct background research on this issue under the terms of the Low Pay Commission-ESRI research partnership agreement.
The Low Pay Commission report and recommendations on sub-minimum rates are expected later this year. I do not want to pre-empt its work or suggest a course of follow-up action, given the Minister and his officials will consider the commission’s report and recommendations when they have been received later this year. While the issue of sub-minimum youth rates is being considered, the Government will continue to be guided by the recommendations of the Low Pay Commission with regard to any changes to the national minimum wage.