The Living Wage
Currently set at €12.30 the Living wage is calculated by the Living Wage Technical Group, and represents the hourly rate of pay individuals working full-time should be able to earn to enjoy a decent standard of living.
Unlike the National Minimum Wage (currently €9.80), the living wage is calculated based on actual costs for people taking into account housing, food and bills. 2019 has seen the Living wage increase by 40c per hour largely due to the current housing crisis and increases to household bills.
The living wage is defined as the required amount to maintain a Minimum Essential Standard of Living (MESL), which is identified by the Vincentian Partnership for Social Justice (VPSJ). This is the minimum threshold below which no individual or household should live. The group believes that the lowest paid workers should live above subsistence levels, and have their physical, psychological and social needs met by their earned income.
This shortfall of €2.50 per hour has to come from somewhere and realistically it is subsidised in one of three ways:
- By the state, through social welfare payments like the Family Income Supplement
- By family and friends, like the parents of 460,000 adult children who live at home because they can’t afford to move out.
- Or, by diminished living conditions, skipping meals, not using heating in colder months to make ends meet.
Why pay the Living Wage
As an employer it might seem a bit ridiculous to pay employees more than you legally have to. However, studies have shown that paying the Living Wage to your employees can go a long way in improving your business in a number of areas:
- The business reputation will improve
- Staff are more motivated, producing higher quality work
- Employee retention rates are increased
- When recruiting you will have a significant advantage over others
- Relations between managers and staff are much improved.
For a business that is able to paying your workers enough so that they can enjoy a decent standard of living can have profound effects of the work rate and moral of the whole team.
Having a payroll partner like Paycheck Plus, can make implementing a change like this simple and pain free.
Paycheck Plus, Your Payroll Outsourcing Partner
Managing payroll is a complex and time-consuming operation. Keeping up to date with ever evolving legislative changes, ensuring payroll compliance and delivering employee wages accurately and on time takes its toll on a business’ senior resources. Here at Paycheck Plus, we’ve been providing comprehensive payroll services tailored specifically to each of our client’s needs for over a decade. Our payroll specialists handle all aspects of payroll management for our clients including answering our client’s employee queries through our Employee Assist Helpline.
To ensure payroll accuracy or for more information on our payroll services simply request a callback now or call our office on 041 9892100. Alternatively, request a quote here.
Paycheck Plus | Your Payroll. Our Passion.