Unions criticise Government's pausing of living wage

Trade unions have expressed their disapproval of the Government's decision to temporarily halt the implementation of the living wage. The living wage is distinct from the minimum wage; it represents the minimum income necessary for a single adult working full-time to maintain a socially acceptable standard of living in Ireland. This wage is set at 60% of median earnings and was initially planned for introduction in 2026, but the schedule has been delayed until 2029.

The Department of Enterprise stated that they are removing the timeline to offer employers greater certainty. In Budget 2027, it was announced that the minimum wage would rise by 79 cents to €14.94 per hour. However, just a day after presenting a budget aimed at increasing workers' incomes, the Government has reportedly betrayed Ireland's lowest-paid workers by abandoning the living wage promise.

Owen Reidy, the General Secretary of the Irish Congress of Trade Unions, criticized the Government for failing to set a new deadline for the living wage, effectively abandoning the policy. Ethel Buckley, the deputy General Secretary of SIPTU, stated that the decision to not announce a new timeline for the living wage has all but abandoned the policy in practical terms.

Hundreds of thousands of workers earning the minimum wage or less will now be expected to earn wages that do not meet an acceptable and adequate income level. The Unite trade union's General Secretary, Sharon Graham, accused the Government of giving in to business lobbyists, emphasizing that the budget supposedly aimed at 'making work pay' has let down Ireland's lowest-paid workers by reneging on its pledge to introduce a statutory living wage.