The national minimum wage will increase from £4.40 to £4.70 an hour from July 1st, the Minister for Enterprise, Trade and Employment, Ms Harney, has announced.
A further increase in the minimum wage to £5 an hour will occur on October 1st, 2002.
These increases were agreed by the social partners and the Government as part of the Programme for Prosperity for Fairness. Ms Harney said yesterday her Department was conducting a publicity campaign to raise awareness of the increase in the minimum wage.
The National Minimum Wage Act has been operating for more than a year since its introduction in April 2000.
"The enforcement of the terms of the Act is an integral part of the work of the Labour Inspectorate of my Department who will be ensuring compliance with the increased rate," said the Tanaiste.
"The national minimum wage legislation was a key priority for Government in order to protect vulnerable employees," she said. A national minimum wage was introduced in the UK in April 1999 at £3.60 sterling an hour. This was increased to £3.70 last year. It will increase to £4.10 in October and rise to £4.20 in 2002. A development rate of £3.20 exists for 18/21-year-olds.
Converted to sterling, under current exchange rates, the State's minimum wage will be approximately £3.43 sterling.
A spokesman for the Department of Trade and Industry in the UK provided some other countries' minimum wages, converted to sterling: US £3.62; Australia £3.67; Canada £3.03; the Netherlands £3.86; France £3.86; and Greece £1.55.
"The Government is committed to removing those earning the national minimum wage from the tax net and significant progress has been made to date on that commitment," Ms Harney said.
Anybody seeking information on the increase in the national minimum wage can telephone the Employment Information Unit at 01-6313131.