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Who takes the credit for minimum wage increases?

The Government is likely a net loser as employers will be able to offset increased costs against their tax liability

Letters to the Editor. Illustration: Paul Scott
The Irish Times - Letters to the Editor.

Sir, – Brian Murphy complains about the Government taking credit for such socially progressive measures as increasing the minimum wage (Letters, July 15th). He argues that employers who must fund such increases should instead be given the credit.

But surely little credit attaches to employers who have to be compelled by law to pay minimally decent wages?

He further suggests that the Government itself benefits from such increases by the additional taxation that arises. Many employees on the minimum wage will not, however, fall within the income tax net. In fact, the Government is likely a net loser as employers will be able to offset the increased costs against their tax liability.

The Government is also, of course, an employer and may incur the increased costs itself. – Yours, etc,

FELIX M LARKIN,

Cabinteely,

Dublin 18.