The living wage is different to the minimum wage, which is set by the Government (stock pic)

Group says living wage should rise to €16 an hour

by · RTE.ie

The Living Wage Technical Group (LWTG) has said that the living wage should rise to €16 an hour, a 3.9% increase from last year's rate of €15.40 per hour.

The living wage is different to the minimum wage, which is set by the Government.

The living wage is defined as the minimum income required for a single adult working full-time to afford a socially acceptable minimum standard of living in Ireland.

The LWTG was established in March 2014 to calculate the living wage.

The group said that over the past year, minimum living costs increased by an average of 3.1%, mainly driven by rising household energy costs and rents for the single adult household on which the rate is modelled.

The 'My Future Fund’ auto-enrolment pension scheme, which came into effect this year, has also had an impact on the calculation of the living wage rate for the first time.

The Low Pay Commission has recommended that the minimum wage should increase by 5.6% next year.

If the proposals are accepted by the Government, it would see the rate rise by 79 cent an hour from €14.15 to €14.94.

Any changes to the minimum wage will be announced on budget day.

"Policy measures can contribute to limiting the potential growth in the living wage rate, but currently the gap between the real living wage and national minimum wage remains significant," said Robert Thornton, Research Manager at the Vincentian MESL Research Centre and LWTG member.

Dr Nat O’Connor, Research and Policy Analyst, and LWTG member said low paid workers often struggle with high rents and high energy costs and find it difficult to make ends meet at the end of each week.

"The living wage is calculated to give full-time workers a minimum essential standard of living," Dr O'Connor said.

The LWTG is supported by the Nevin Economic Research Institute, SIPTU, Social Justice Ireland, Society of St Vincent de Paul, TASC, Unite the Union, UCD School of Social Policy, Social Work and Social Justice, and the Vincentian MESL Research Centre at SVP.