Monday 22 July 2019

Almost a third of workers on the minimum wage get a pay hike within 12 months


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Anne-Marie Walsh

Almost a third of workers on the minimum wage achieve higher pay within a year.

This is almost twice as many as stay on the basic €9.55-an-hour pay rate over a time frame of nine months.

A new study of the movements of workers on the statutory minimum wage to be published today reveals that the biggest portion move to higher pay.

The study comes as the minimum wage rate is set to rise by 25c in the Budget to €9.80 an hour.

It finds most of those who get higher pay stay in their current job rather than moving to another one.

Non-Irish nationals, those with low levels of education, part-time workers and those on temporary contracts are most likely to stay on the minimum wage.

Minimum wage workers are also 4pc more likely to become unemployed compared to higher-paid staff.

The study also shows 18pc of those on the minimum wage stay on it over a nine-month period.

Some 6pc become unemployed, and 11pc go on the minimum wage after being unemployed.

And 13pc who were on higher pay go on the minimum wage.

The remaining 23pc move between scenarios, eg, from unemployment to the minimum wage and back.

"While minimum wage employment acts as a stepping stone to higher pay for many employees, it is important to note that it can also represent a low wage trap for certain types of workers and is also associated with a greater likelihood of becoming unemployed," said Paul Redmond, an author of the report.

The national minimum wage rose to €9.55 an hour in January this year.

Irish Independent

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