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Key Strategic Employment Issues to Consider for 2022 - #3

The Living Wage could be a closer prospect in 2022.

In Ireland the ‘Living Wage’ is defined by Trade Unions as “the average gross salary which will enable full-time employed adults (without dependents) across Ireland afford a socially acceptable minimum standard of living. The “Living Wage” for the Republic of Ireland for 2022 has been calculated at €12.90 per hour. The new rate represents an increase of 60c per hour ( 4.9%.) over the 2020/21 rate (€12.30) which represents the largest single increase in its history to date.

The Living Wage has nothing to do with the National Minimum Wage (NMW) which is also set to increase to €10.50 on 1st January 2022 following Budget 2022. The Living Wage remains a Trade Union Construct that does not take any account of Employer ability to pay, or whether individuals may be using income to provide ‘spending money’ or to supplement other sources of income during periods of education. (The National Living Wage in the UK applies to those aged 23 and over and is currently set at £8.91 ph)

The Government has asked the Low Pay Commission to look at the design of a “living wage” for workers in an Irish context. It is unclear if such a measure was to be introduced whether it would be on a statutory or non-statutory basis. Whilst Stratis understands the political ambition of Government to ensure that lower paid workers can enjoy better terms and conditions, the introduction of a living wage, at a time when many businesses are trying to recover from the pandemic will cost jobs or risk people’s working hours being reduced.

If you would like to talk to us about any of these issues, or about engaging your people through the period ahead, please get in touch with me at or any one of our Partners.

Brendan McGinty

Managing Partner

Stratis Consulting

‘Strategic Employment Relations’

T: +353 (0) 1 2166302

M: +353 (0) 87 2433038

Disclaimer: The information in this article is for practical guidance only and does not constitute legal or case specific advice. The answers to specific situations will vary depending on the circumstances of each case. This is not a substitute for specific professional advice relevant to individual circumstances facing your business.


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