Maximum wage limit needed too
WE cannot have a true minimum wage without having a maximum wage limit. People on the top socio-economic levels are getting super normal wage/salaries because they are operating in an imperfect, competitive labour market.
A ceiling should be put above what is considered to be a normal wage/salary. A 60pc to 100pc levy, pro rata based, should be put on super-normal incomes above that ceiling. Transfer this revenue to the Department of Social Welfare.
Employers' PRSI contributions should be reduced for those they employ on the average to minimum wage, equivalent to the amount received from the super-normal income levy. This would make our exports more competitive. The macro-economic multiplier effect would help to create and restore real growth, confidence and sustainability in our economy.