Low Pay Commission has recommended abolition of sub-minimum rates of pay for younger workers but businesses are opposed
The Irish Times – 17 September 2024
Young people can leave school at 16, drive at 17 and vote at 18. Yet Central Statistics Office data from 2020 tells us that as many as 10,000 under-20s were being paid less than their colleagues for no reason other than their age – or around one in five of those who had a job. This undermines the principle of “equal pay for equal work”, and puts a disproportionate financial strain on young workers. As a student who sees the financial struggles students face daily, I believe that it is time to rethink the arguments for paying younger workers less than their older colleagues.
Rather than encouraging businesses to treat young workers as cheap labour, the Government should prioritise reducing the costs faced by businesses
Beyond the moral arguments are the economic ones. Students are among the worst-affected by the cost-of-living crisis. Many students in full-time third-level education have no other option but to work to be able to afford the cost of college. The average part-time monthly wage is €1,016 (if you are on the full rate minimum wage). Research from Technological University Dublin shows that if you live at home while in third-level education, the average monthly cost of living is estimated to be €701. This figure includes utilities, college fees, food, travel, and other expenses. It’s worse if you are a student living away from home, with the average monthly cost more than doubling to €1,565 a month, which would leave a student on the minimum part-time wage €549 in the red, before tax. Rent for student accommodation accounts for the largest portion of this cost at €685 per month, followed by utilities, food, travel, and other expenses.
These figures are based on someone earning the full minimum wage (currently €12.70 an hour): imagine the hardship some students face if they are 18, paid below the minimum wage, with no financial support from their family.
The National Youth Council of Ireland points out that the current bands do not provide an adequate income. According to the council, an 18 year old earning €9.04 per hour in a full-time job working 35 hours a week makes less than half of what is needed to meet a minimum essential standard of living. Then there is the fact that Ireland is one of very few EU countries (just six out of the 27) to still have age-based rates for young adult workers.
The main argument made by those who are against abolishing sub-minimum rates is that businesses are struggling with higher costs and cannot afford higher wages. But rather than encouraging businesses to treat young workers as cheap labour, the Government should prioritise reducing the costs faced by businesses in other areas. The Economic and Social Research Institute says that abolishing the sub-minimum wage rates would have a “low” impact on labour costs.
The Low Pay Commission published its report on sub-minimum youth rates in March of this year and made two recommendations: to abolish sub-minimum wage rates for those aged 18 and 19 no sooner than January 1st, 2025, and to abolish the same rates for under-18s, with a feasibility study to be conducted after two years on the adverse consequences, if any, of such measures. As a young person, I believe that it is in the best interest of the Government to accept these recommendations and bring an end to an ageist scheme that ties productivity to age, and leaves thousands of students and young people at a disadvantage.
This article was originally published in the Irish Times in September 2o24.
Jamie Mac Giolla Bháin 
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