Move to tighten Minimum Wage Bill

The Government is considering amending the Minimum Wage Bill to exclude tips and premium payments in the calculation of the £…

The Government is considering amending the Minimum Wage Bill to exclude tips and premium payments in the calculation of the £4.40 (#5.59) an hour minimum payment.

The move follows concerns from Opposition and Fianna Fail TDs, who claimed young workers would be unfairly victimised if tips and bonus payments for working weekends and on public holidays were included.

An interdepartmental group recommended that shift premium, unsociable premium, Saturday and Sunday premiums and public holiday bonuses should be included for minimum wage pay, if earned within the standard working hours.

However, they should be excluded from minimum wage pay if earned in overtime hours, the interdepartmental group said.

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It is understood the Government is prepared to make amendments to the Bill at committee stage to totally exclude tips, weekend and public holiday bonus payments from the minimum wage payments.

In the Dail on Thursday, the Minister of State for Labour Affairs Mr Tom Kitt said he was prepared to "consider reasonable proposals for change at committee stage".

He said the line adopted in relation to benefits-in-kind, tips and gratuities and when they should be included were arrived at with reference to the relevant employment regulation orders.

He stressed that the Bill did not address employees retaining tips paid by a customer directly, but only those distributed from a central fund by an employer.