Minimum Wage Cut Clear Attack on Most Vulnerable
Issued : Friday 10 December, 2010
Local Labour T.D Róisín Shortall has criticised the Government for cutting the minimum wage by €1 per hour, a move which was taken in the Budget.
Deputy Shortall commented, 'Cutting the minimum wage makes no sense at all. The hardship such a cut will make will be very significant for thousands of households who rely on minimum wage employment.In addition, the new Universal Social Charge (USC) is little more than a "Working-Poor Tax". Combined with the reduction in the minimum wage it will significantly impact on low-paid workers.By reducing the rate of minimum wage from €8.65 to €7.65, a person stands to lose over €40 a week, leaving their gross pay at €306. In addition the new USC charge will mean that they stand to lose a further €8.42, leaving their take home income at €297.58 per week.Cutting the minimum wage at this time, and introducing additional taxes, will clearly not only hurt workers struggling to survive on low-pay, but will cause considerable suffering to many families forcing them to turn to social welfare for vital assistance.This measure will not reduce the fiscal deficit by one cent, it will not generate any new jobs. On the contrary, it will only push lower paid workers deeper into poverty.
