Irish minimum wage increase bridges wage disparity

EPA/-EFE/ANDY RAIN

Irish minimum wage increase bridges wage disparity


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The increase in the Irish Minimum Wage from €8.65 to €9.15 per hour in 2016 reduced wage inequality between high and low earners, according to a study by the Economic and Social Research Institute.

This 6% pay rise narrowed the wage gap between the top 10% and the bottom 10% of earners by 8%. Moreover, the number of people earning the minimum wage, or below, fell by 40%.

The increase in the minimum wage also had a spillover effect on the earnings of workers paid up to €11.50 an hour, or the 25% lowest paid of the Irish workforce.

Overall gross household incomes, however, were not strongly impacted, as minimum wage earners are rarely the main earners in Irish households.

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