Minimum wage rise in Ireland did not see low-paid workers lose jobs – study

By Grainne Ni Aodha, Press Association

The recent minimum wage rises in Ireland did not result in low-paid workers losing their jobs, according to a recent study.

The ESRI (Economic and Social Research Institute) study examined whether increases in the minimum wage, which rose annually from 2016 to 2025, saw low-paid workers lose jobs if employers reduced their workforce due to higher labour costs.

The study, funded by the Low Pay Commission, looked at the six-month period after the most recent minimum wage increase.

It found no evidence that recent minimum wage increases in Ireland increased the likelihood of employees on minimum wage losing their jobs.

While minimum wage employees are generally more likely to become unemployed than higher-paid workers, the likelihood of this happening did not increase following increases to the minimum wage.

In the years where there were larger minimum wage increases, there was not a higher likelihood of minimum wage employees becoming unemployed.

The ESRI warned that the time period examined featured strong economic growth and low unemployment.

Job loss among employees aged under 20 years old in Ireland, who can be paid less than the full adult minimum wage, were also examined by the ESRI.

An employee aged 18 is entitled to 80 per cent of the full adult minimum wage rate, while a 19-year-old can earn 90 per cent.

The study found that overall, young workers that “age into” a higher minimum wage band did not experience an increased likelihood of job loss following their birthday.

Despite this, the study found that youth minimum wage rates appear to be increasingly relied upon by employers, with 30 per cent of employees aged under 20 paid the sub-minimum wage rate in 2025.

“It is possible that employers are increasingly using sub-minimum youth wage rates to keep labour costs low as the minimum wage gets higher,” the ESRI said.

Author of the report Dr Paul Redmond said: “It is important to monitor whether increases to the minimum wage result in negative employment effects for low-paid workers.

“In this study, we find that recent minimum wage increases, which occurred during a period of strong economic growth and low unemployment, did not increase the likelihood of minimum wage employees losing their jobs.”

Ultan Courtney, chairperson of the Low Pay Commission, said it welcomed the publication of the research.

“The Low Pay Commission values the depth of this research and its strong evidence-based approach.

“The Commission strives at all times to make evidence-based recommendations.

“Our work relies on rigorous, data driven research and this research provides valuable insights into the effects of increases in the minimum wage.

“The research will support our discussions as we prepare our recommendation to Government on the 2027 minimum wage.”