Housing crisis sees hike in recommended 'Living Wage'

The living wage is the minimum income required for a socially acceptable standard of living

Irish workers should be paid at least €11.90 per hour to have a reasonable standard of living.

That's according to the body that decides Ireland's 'living wage.'

The living wage is the minimum income a full-time worker needs to experience a socially acceptable standard of living.

The figure has increased by 20 cent since last year – while Ireland’s National Minimum Wage still stands at €9.55.

The Living Wage Technical Group (LWTG) said the increase is largely down to the ongoing housing crisis – with rent increases continuing to push up living costs.

Dr Bernadette McMahon of the Vincentian Partnership for Social Justice said:  “We try and reflect a figure which actually reflects the cost of living and what people have to spend for a reasonable standard of living,” she said.

“Because we have employers in mind as well, we always go for the minimum increase.”

She said there were decreases in the costs of food, clothing, health insurance and transport this year – however the savings were all wiped out by rising rents.

Meanwhile, there was also a big increase in home energy costs – up 5.2%.

The LWTG said rents in Dublin now account for nearly half of a single person’s minimum living costs – increasing by €21 per week since last year.

The living wage was first reported in 2014.