A group representing Irish businesses says there is no justification for raising the minimum wage at this time.

IBEC are welcoming the introduction of the Low Pay Commission, which will advise the Government on changes to the National Minimum Wage.

But IBEC's Head of Industrial Relations Maeve McElwee says there is currently no basis for altering it:

The Low Pay Commission will be made up of nine members and will take a range of issues into consideration in making its recommendation. The members include trade union and business representatives, economy experts and a representative of the Migrants Rights Centre Ireland.

Dr Donal de Buitléir, director of PublicPolicy.ie, will serve as chairperson.

Issues to be considered include changes in earnings since the last increase in the National Minimum Wage in 2011, employment and unemployment rates, the cost of living and national competitiveness.

The commission will consult with appropriate interest groups and people who are on the minimum wage, as well as employers in sectors associated with low pay.

The group's first report is due to be published in July - and the Government will respond before the Budget.

Taoiseach Enda Kenny says the commission will ensure the minimum wage is changed ‘incrementally’ over time - and must ensure that those in work are paid sufficiently:

€8.65 is the current rate of minimum wage.

Last month, the trade union SIPTU said it would seek a minimum living wage of €11.45 per hour.

SIPTU president, Jack O'Connor, has also said that his union is embarking on a "major campaign" for pay increases of 5% across the economy.

However, employers group IBEC said many companies remain in survival mode - and that keeping costs under control is vital to sustaining existing employment and creating new jobs.

IBEC said suggestions that either business or government could afford to award 5% pay rises this year were "reckless, foolish and utterly detached from economic reality."

Originally posted at 8.14am